offering memorandum potbelly strip...

OFFERING MEMORANDUM

POTBELLY STRIP CENTERCINCINNATI (WEST CHESTER), OHIO

ACTUAL PHOTO

LIBERTY SOUTH

SUBJECT PROPERTY

LIBERTY WAY

18,230 DAILY

TYLERS PLACE BLVD.

288 UNITS

RESIDENTIALCOMMUNITIES130,982 RESIDENTS IN TRADE AREA

129

LIBERTY WAY

18,230 DAILY

TYLERS PLACE BLVD.

CINCINNATI CHILDREN’S

LIBERTY CAMPUS

LAKOTA WASTHIGH SCHOOL2,565 STUDENTS

118,652 DAILY FUTURE HOME OF CHRIST HOSPITAL

NORTH (2018)


129

SUBJECT PROPERTY

LIBERTY WAY

18,230 DAILY

TYLERS PLACE BLVD.

118,652 DAILY

WETHERINGTONCOUNTRY CLUB

UC HEALTH WESTCHESTER HOSPITAL


SUBJECT PROPERTY

Price $4,968,000

Cap Rate 6.85%

Gross Leasable Area 9,167 SF

Current Occupancy 100%

Year Built 2017

Lot Size 1.48 +/- Acres

Rent Roll

ADDRESS:Liberty Way & Tyler’s Place Blvd., West Chester, OH 45069

TENANT GLA % OF GLA

ANNUALRENT RENT/SF RENT

COMMENCEMENTLEASE

EXPIRATION OPTIONS CHANGES ON CHANGES TO

Potbelly Sandwich Works

2,400 26.18% $93,600 $39.00 10/1/2016 10/31/2026 Two, 5-Year Year 6Option 1Option 2

$102,960$113,256$124,584

MOD Pizza 2,400 26.18% $96,000 $40.00 12/14/2016 12/31/2026 Two, 5-Year Year 6Option 1Option 2

$105,600$116,160$127,776

Bentley’s Pet Stuff

2,135 23.29% $76,860 $36.00 3/1/2017 2/28/2027 Two, 5-Year Year 6Option 1Option 2

$84,546$93,001

$102,288

Aura Nail & Salon 2,232 24.35% $82,584 $37.00 Est. Feb. 2018 10 Years Two, 5-Year Year 6Option 1Option 2

$90,842$99,927

$109,926

TOTAL 9,167 100.00% $349,044

INCOME

Base Rent $349,044

Management Fee (3% of Base Rent) ($10,471)

Admin. Fee Reimbursements $1,745

NET OPERATING INCOME $340,318

Demographics• 10-Year Leases with 10% Increases Every 5 Years

• 2017 Construction with a Drive-Thru

• 130,982 Residents in Trade Area

• Fastest Growing Community in the Region

• Average Household Income Exceeds $163,000 within 1 Mile

• One of the Wealthiest Counties in the U.S.

• Surrounded by Master-Planned Private Golf Club Communities with Home Values of $1+ Million

• Across from 1.3 Million SF Liberty Center, a $350 Million High-End Mixed-Use Development on 100 Acres

• Outparcel to Cabela’s, Their 1st Store in Southern Ohio

• Across from Christ Hospital’s Brand New 125,000 SF Medical Hub, Opening in 2018

• Across from TriHealth’s Planned Medical Campus on 33 Acres

• 1 Mile to Cincinnati Children’s Hospital Campus and West Chester Regional Hospital

• 60,441 Employees within 5 Miles, Strong Daytime Population

• Close Proximity to 8,000 Students at Lakota West/East, and Mason High Schools

• Just Off I-75 with 118,652 Cars/Day

• Hard Corner Location at Signalized Intersection

• 23 Miles North of Downtown Cincinnati

Investment HighlightsPOPULATION 1-MILES 3-MILES 5-MILES

2010 Population 3,144 53,390 125,560

2016 Population 3,264 55,557 130,982

2021 Population 3,719 60,596 143,266

HOUSEHOLDS

2010 Households 1,068 17,708 43,426

2016 Households 1,111 18,454 45,424

2021 Households 1,273 20,166 49,756

INCOME

2016 Median Household Income $115,549 $93,838 $94,246

2016 Per Capita Income $55,789 $39,621 $41,992

2016 Average Household Income $163,568 $119,111 $120,970

Population within a 5-Mile Radius

45,424Households within

a 5-Mile Radius

$120,970Average Household Income

within a 5-Mile Radius

130,982

Aerial Photo

←

MVG DEVELOPMENT

FUTURE HOME OF CHRIST HOSPITAL

NORTH (2018)

LIBERTY SOUTH

FUTURE DEVELOPMENT

SUBJECT PROPERTY

NATIONAL VOICE OF AMERICA MUSEUM OF BROADCASTING

MIAMI UNIVERSITY VOICE OF AMERICA LEARNING CENTER

WETHERINGTONCOUNTRY CLUB

GREEN CRESTGOLFCLUB

FOUR BRIDGESCOUNTRY CLUB

HERITAGEGOLF CLUBTRIHEALTH

CAMPUS

UC HEALTH WESTCHESTER HOSPITAL

288 UNITS


WOODLANDELEMENTARY SCHOOL501 STUDENTS

LIBERTY JUNIORHIGH SCHOOL890 STUDENTS

LAKOTA WASTHIGH SCHOOL2,565 STUDENTS

CINCINNATI CHILDREN’S

LIBERTY CAMPUS

LIBERTY WAY

18,230 DAILY

129

118,652 DAILY

Tenant Overview

Potbelly Corporation is a publicly traded restaurant chain that sells submarine sandwiches and other food in the United States, United Kingdom, United Arab Emirates and Canada. The company is headquartered at the River Center in Chicago, Illinois. By August 2017, 60% of Potbelly’s business came from lunch. It had 424 owned stores and 54 franchised stores. Potbelly believes in simple, high-quality ingredients such as whole roasted turkey breast, Angus roast beef, grilled all-natural chicken, albacore tuna and authentic Italian meats. They also fire up the ovens every morning and bake fresh batches of their original recipe cookies.

424+LOCATIONS

HEADQUARTERED IN

Chicago, IL

MORE THANFOUNDED

1977 7,000TEAM MEMBERS

OWNERSHIP:PUBLIC

TENANT:CORPORATE

WEBSITE:www.potbelly.com

REPRESENTATIVE PHOTO

LANDLORD RESPONSIBILITIES

Landlord shall, at its sole cost and expense, make o, or cause to be made, the repairs and replacements necessary to maintain the Shopping Center including, without limitation upkeep of the roof, foundation, exterior walls, interior structural walls, and all structural components of the Shopping Center. Landlord shall also repair and maintain, or cause to be repaired and maintained, all parking areas, sidewalks, landscaping and drainage systems on the Property and all utility systems (including mechanical, electrical and HVAC systems) and plumbing systems which serve the Shopping Center as a whole.

TENANTRESPONSIBILITIES

Tenant shall keep the Premises in good order and repair, including maintaining all plumbing, HVAC, electrical and lighting facilities and equipment within the Premises exclusively serving the Premises, and the store front, doors, and plate glass of the Premises.

CAM Landlord shall be responsible for the maintenance of common areas. Tenant shall pay to Landlord, as additional rent, its pro rata share of CAM. Annual increases in CAM shall not exceed 5% excluding snow removal.

TAXES Tenant shall pay its pro rata share of real estate taxes.

INSURANCE Tenant shall carry bodily injury, personal injury and property damage insurance (naming Landlord as an additional insured) and commercial property insurance.

Landlord shall obtain and keep in full force and effect Bodily injury, personal injury and property damage insurance and commercial property insurance.

ASSIGNMENT & SUBLETTING

Tenant may assign or sublet the lease with the written consent of Landlord, but shall remain liable under this Lease.

ESTOPPEL Tenant shall have 21 Days from receipt of request to provide an executed estoppel.

Lease Summary

Tenant Overview

Lexington-based Cool Dough, LLC is a subsidiary of CRM Companies. Cool Dough, LLC operates four MOD Pizza restaurants in Kentucky, Ohio and Indiana, with three others set to open in the first quarter. CRM has successfully navigated the real estate development and hospitality segment for 20 plus years. Founded by Craig Turner and Wayne Wellman, CRM’s vision always included managing property they developed, and after steady growth the company is now developing hotels, restaurants, and build-to-suits for national tenants. CRM’s projects range from Class A Office Space for Fortune 500 clients such as AT&T, SmithKline Beecham, and the Coors Brewing Company to Starwood, Hilton Hotels and boutique hotels that are consistently ranked top in their class. CRM also provides on-site property and facilities management services for both owned and non-owned properties, managing over 3.5 million square feet throughout ten states in the eastern United States and employees over 650 full and part time staff. The MOD Superfast brand will increase the CRM restaurant portfolio to 34 units with additional restaurants forthcoming with current brands as well.

OWNERSHIP:PRIVATE

TENANT:FRANCHISEE

WEBSITE:www.modpizza.com

4+LOCATIONS AS FRANCHISEE

20 Year History



Landlord shall, at its sole cost and expense, maintain in good condition and repair the exterior parking and landscaped areas, the roofing (including the roof structure and all elements supporting the floor or roof), gutters, downspouts, exterior painting, wiring, plumbing, pipes, conduits and equipment which serve the Premises but are not located within the interior thereof, all structural portions of the Premises and Tenant’s building (including without limitation the foundations, exterior walls, columns, store front, and floor slab).


Tenant will keep the Premises neat and clean and in good condition and repair and shall make and pay for all repairs to the interior non-structural portions of the Premises and all equipment and systems located within and serving the Premises exclusively, including, without limitation, all plate glass, doors and closures, HVAC system, lights and lighting fixtures, and all utility lines within the Premises and which exclusively serve the Premises.

CAM Landlord shall be responsible for the maintenance of common areas. Tenant shall pay to Landlord, as Additional Rent, its pro rata share of CAM including a 10% admin fee. Annual increases in CAM shall not exceed 5% excluding utilities and snow removal.


INSURANCE Tenant shall carry special form all risk insurance, commercial general liability insurance (naming Landlord as additionally insured) and workers compensation.

Landlord shall carry Special Perils property coverage and commercial general liability insurance. Tenant shall pay Landlord, as additional rent, its pro rata share of Landlord’s insurance costs.


Tenant may assign or sublet the lease with the written consent of Landlord, but shall remain liable under the terms of the lease.


Lease Summary

Bentley’s Pet Stuff Tenant Overview

Bentley’s Pet Stuff is an all-natural pet food store with a mission to supply nutrition that’s free from by-products, corn, soy and wheat. As a family owned and operated business, Bentley’s believes in always prioritizing pets over profits and are steadfast in their commitment to integrity in everything they do from selecting their partners, determining the products they carry, hiring associates, and maintaining high standards.

80+LOCATIONS

HEADQUARTERED IN

Chicago, IL

OWNERSHIP:PRIVATE

TENANT:CORPORATE

WEBSITE:www.petstuff.com


Aura Nail & Salon Tenant Overview

OWNERSHIP:PRIVATE

TENANT:PRIVATE

AuraNail & SalonAura Nail & Salon offers a full range of progressive aesthetic services,

including a variety of nail and salon services.

1LOCATION

HEADQUARTERED IN

Cincinnati, OH



Landlord shall, at its initial cost and expense, maintain in good condition and repair the exterior parking and landscaped areas, the roofing (including the roof structure and all elements supporting the floor or roof), gutters, downspouts, exterior painting, wiring, plumbing, pipes, conduits and equipment which serve the Premises but are not located within the interior thereof, all structural portions of the premises and Tenant’s building (including without limitation the foundations, exterior walls, columns, store front, and floor slab).


Tenant will keep the premises neat and clean and in good condition and repair and shall make and pay for all repairs to the interior non-structural portions of the Premises and all equipment and systems located within and serving the premises exclusively, including, without limitation, all plate glass, doors and closures, HVAC system, lights and lighting fixtures, and all utility lines within the Premises and which exclusively serve the premises.

CAM Landlord shall be responsible for the maintenance of common areas. Tenant shall pay to Landlord, as Additional Rent, its pro rata share of CAM including a 5% admin fee. Annual increases in CAM shall not exceed 3% excluding utilities and snow removal.







Lease Summary


Landlord shall, at its sole cost and expense, maintain in good condition and repair the exterior parking and landscaped areas, the roofing (including the roof structure and all elements supporting the floor or roof), gutters, downspouts, exterior painting, wiring, plumbing, pipes, conduits and equipment which serve the Premises but are not located within the interior thereof, all structural portions of the Premises and Tenant’s building (including without limitation the foundations, exterior walls, columns, store front, and floor slab).


Tenant will keep the Premises neat and clean and in good condition and repair and shall make and pay for all repairs to the interior non-structural portions of the Premises and all equipment and systems located within and serving the Premises exclusively, including, without limitation, all plate glass, doors and closures, HVAC system, lights and lighting fixtures, and all utility lines within the Premises and which exclusively serve the Premises.

CAM Landlord shall be responsible for the maintenance of common areas. Tenant shall pay to Landlord, as Additional Rent, its pro rata share of CAM including a 10% admin fee.







Lease Summary

AuraNail & Salon

Site Plan

Aura Nail & Salon

DUMPS

TER

LIBE

RTY

WAY

9,000 SF |1.48 ACRESPOTBELLY | MOD PIZZA | BENTLEY’S | AURA

T O L O C A L A T T R A C T I O N SPROXIMITY

2 0 M I L E SCincinnati Zoo &

Botanical Garden

2 2 M I L E SDowntown Cincinnati

3 2 M I L E SCincinnati/Northern

KentuckyInternational

Airport

6 M I L E SCincinnati Premium Outlets

POTBELLYSTRIP CENTER

Cincinnati is a city in Ohio that serves as county seat of Hamilton County. Cincinnati is the third-largest city in Ohio and the 65th-largest city in the United States. Its metropolitan statistical area is the 28th-largest in the United States and the largest centered in Ohio. The city is also part of the larger Cincinnati–Middletown–Wilmington combined statistical area.

In the 19th century, Cincinnati was an American boomtown in the heart of the country; it rivaled the larger coastal cities in size and wealth. Throughout much of the 19th century, it was listed among the top 10 U.S. cities by population, surpassed only by New Orleans and the older, established settlements of the Eastern Seaboard; at one point holding the position of America’s sixth-largest city for a period spanning consecutive census reports from 1840 until 1860. It was by far the largest city in the west. Because it is the first major American city founded after the American Revolution as well as the first major inland city in the country, Cincinnati is sometimes thought of as the first purely “American” city.

Cincinnati is home to two major sports teams, the Cincinnati Reds, the oldest franchise in Major League Baseball, and the Cincinnati Bengals of the National Football League. The University of Cincinnati is one of the 50 largest in the United States. Cincinnati is known for its historic architecture. In the late 1800s, Cincinnati was commonly referred to as “Paris of America”, due mainly to such ambitious architectural projects as the Music Hall, Cincinnatian Hotel, and Shillito Department Store.

Cincinnati has the fastest growing economy in the Midwestern United States. The Gross Metro Product is $119 Billion, and median household income is $56,538. The median home price is $152,500, and the cost of living in Cincinnati is 8.2% below national average. The unemployment rate is also below the national average at 4.3%.

Several Fortune 500 companies are headquartered in Cincinnati, such as Procter & Gamble, The Kroger Company, and Macy’s, Inc., among others. General Electric has headquartered both their GE Aviation business and their Global Operations center in Cincinnati. The Kroger Company employs 21,646 people locally, making it the largest employer in the city, and the University of Cincinnati is the second largest at 16,000.

Cincinnati, OH

CONFIDENTIALITY & DISCLAIMER

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 Marcus & Millichap and should 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, 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. Marcus & Millichap 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, PCB’s 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, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap 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.

NON-ENDORSEMENT NOTICE

Marcus & 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 or name 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.

NET-LEASED DISCLAIMER

Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows:

The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.

As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer.

Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors. Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs.

Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property.

By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.

Phil SambazisSenior Managing Director

SAN DIEGOTel: (858) 373-3174 [email protected] License: CA 01474991

exclusive offeringMichael GlassBroker of Record

INDEPENDENCELicense: BRK.2007005898

Mark RubleSenior Managing Director

PHOENIXTel: (602) 687-6766 [email protected] License: AZ SA550593000

Jamie MedressSenior Managing Director

PHOENIXTel: (602) [email protected] License: AZ SA108228000

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