online auction nameoki commons
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O F F E R I N G M E M O R A N D U M
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A F F I L I AT E D B U S I N E S S D I S C LO S U R ECBRE, Inc. operates within a global family of companies with many subsidiaries and/or related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At times different Affiliates may represent various clients with competing interests in the same transaction. For example, this Memorandum may be received by our Affiliates, including CBRE Investors, Inc. or Trammell Crow Company. Those, or other, Affiliates may express an interest in the property described in this Memorandum (the “Property”) may submit an offer to purchase the Property and may be the successful bidder for the Property. You hereby acknowledge that possibility and agree that neither CBRE, Inc. nor any involved Affiliate will have any obligation to disclose to you the involvement of any Affiliate in the sale or purchase of the Property. In all instances, however, CBRE, Inc. will act in the best interest of the client(s) it represents in the transaction described in this Memorandum and will not act in concert with or otherwise conduct its business in a way that benefits any Affiliate to the detriment of any other offeror or prospective offeror, but rather will conduct its business in a manner consistent with the law and any fiduciary duties owed to the client(s) it represents in the transaction described in this Memorandum.
This is a confidential Memorandum intended solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property. This Memorandum contains selected information pertaining to the Property and does not purport to be a representation of the state of affairs of the Property or the owner of the Property (the “Owner”), to be all-inclusive or to contain all or part of the information which prospective investors may require to evaluate a purchase of real property. All financial projections and information are provided for general reference purposes only and are based on assumptions relating to the general economy, market conditions, competition and other factors beyond the control of the Owner and CBRE, Inc. Therefore, all projections, assumptions and other information provided and made herein are subject to material variation. All references to acreages, square footages, and other measurements are approximations. Additional information and an opportunity to inspect the Property will be made available to interested and qualified prospective purchasers. In this Memorandum, certain documents, including leases and other materials, are described in summary form. These summaries do not purport to be complete nor necessarily accurate descriptions of the full agreements referenced. Interested parties are expected to review all such summaries and other documents of whatever nature independently and not rely on the contents of this Memorandum in any manner. Neither the Owner or CBRE, Inc, nor any of their respective directors, officers, Affiliates or representatives make any representation or warranty, expressed or implied, as to the accuracy or completeness of this Memorandum or any of its contents, and no legal commitment or obligation shall arise by reason of your receipt of this Memorandum or use of its contents; and you are to rely solely on your investigations and inspections of the Property in evaluating a possible purchase of the real property.
The Owner expressly reserved the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions with any entity at any time with or without notice which may arise as a result of review of this Memorandum. The Owner shall have no legal commitment or obligation to any entity reviewing this Memorandum or making an offer to purchase the Property unless and until written agreement(s) for the purchase of the Property have been fully executed, delivered and approved by the Owner and any conditions to the Owner’s obligations therein have been satisfied or waived. By receipt of this Memorandum, you agree that this Memorandum and its contents are of a confidential nature, that you will hold and treat it in the strictest confidence and that you will not disclose this Memorandum or any of its contents to any other entity without the prior written authorization of the Owner or CBRE, Inc. You also agree that you will not use this Memorandum or any of its contents in any manner detrimental to the interest of the Owner or CBRE, Inc. If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return this Memorandum to CBRE, Inc.
© 2019 CBRE, Inc. The information contained in this document has been obtained from sources believed reliable. While CBRE, Inc. does not doubt its accuracy, CBRE, Inc. has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.
C O N F I D E N T I A L I T Y AG R E E M E N T
D I S C L A I M E R
DISCLOSURESDisclaimer and
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T H E A U C T I O N P R O C E S S An online auction event will be conducted on RealINSIGHT Marketplace in accordance with the Sale Event Terms and Conditions (https://marketplace.realinsight.com/legal-sale-terms).
AUCTIONOffering Process and
Capital Markets | Auction Division3280 Peachtree Road, Suite 1400 Atlanta, GA 30305www.cbre.com
P H I L KAT E ST: 954-745-7468 C: 305-206-1286E: [email protected]
A DA M S K L AV E RT: 954-745-7467 C: 301-706-4619E: [email protected]
ADVISORSInvestment
C H A S E YO U N GLocal SpecialistT: 314-665-6062E: [email protected]
D U E D I L I G E N C E Due diligence materials are available to qualified prospective bidders via an electronic data room hosted by RealINSIGHT Marketplace. Prospective bidders will be required to electronically execute a confidentiality agreement prior to being allowed access to the materials. All due diligence must be conducted prior to signing the purchase and sale agreement. You may contact the sales advisors with any due diligence questions.
B U Y E R Q U A L I F I C AT I O N Prospective bidders will be required to register with RealINSIGHT Marketplace to bid. Each bidder will be required to provide current contact information, submit proof of funds up to the full amount they plan to bid, and agree to the Auction Terms and Conditions. In order to participate in an auction, the Seller requires bidders to provide proof of their liquidity in an amount of at least their anticipated maximum bid for those assets they wish to bid on. Such liquidity must be in the form of cash, or cash equivalents, and must be available immediately without restriction.
Generally, recent bank statements, brokerage account statements, or bank letters are acceptable. A line of credit statement may be acceptable only if it is already closed and in place, has undrawn capacity, and may be funded immediately without bank approval. Loan pre-approval letters, term sheets, and the like, where the loan would be collateralized by the property up for auction and funded at escrow closing, are NOT acceptable. Capital call agreements, investor equity commitments, and the like, are evaluated on a case-by-case basis. The acceptance of any proof of funds documents are made at the sole and absolute discretion of RealINSIGHT Marketplace. For further information, please visit the Bidder Registration FAQ (https://marketplace.realinsight.com/faq-bid-registration).
A U C T I O N DAT E The Auction end date is set for AUGUST 10-12, 2020. R E S E R V E A U C T I O N This will be a reserve auction and the Property will have a reserve price (“Reserve Price”). The starting bid is not the Reserve Price. The seller can accept or reject any bid. All bidders agree to execute the non-negotiable purchase and sale agreement, which will be posted to the electronic data room prior to bidding commencement, should they be awarded the deal. For further information about how to bid, please visit the Bidding page (https://marketplace.realinsight.com/faq-bidding).
C LO S I N GFollowing the auction, the winning bidder will be contacted by phone and email to go over specifics of the sale, including the execution of the purchase agreement and all documentation involved in the purchase. The winning bidder must be available by telephone within two hours of the sale. More information can be found on the RealINSIGHT Marketplace website.
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CBRE’s Investment Group and RealINSIGHT Marketplace are proud to offer Nameoki Commons is a ±155,380 SF neighborhood shopping center located at 3401-3551 Nameoki Road in Granite City, IL (“The Property”) within the in the St. Louis-NE Metro Illinois MSA for purchase. Nameoki Commons presents a unique value-add opportunity for investors to purchase a well located retail center at an attractive basis in a dense market. within the St. Louis MSA The offering provides a mix of stable cash flow from its in-place tenancy, and value-add upside potential through vacancy absorption and strategic leasing strategies.
Nameoki Commons is currently ±35.43% occupied by a variety of local, regional, and national tenants including AT&T, Verizon Wireless, Hibbett Sports, Sally Beauty, Cato, Arby’s, Applebee’s, H&R Block, Church’s Chicken, Sprint, and T-Mobile. The diverse mix of internet resistant tenants have long operating histories, staggered lease expirations, contractual rate increases, and options to extend. A new investor can substantially improve leasing velocity of the vacant retail space through a strategic leasing plan. The largest space, a 69,000 SF vacant box formerly occupied by Shop ‘N Save, provides buyers the opportunity to subdivide the space or lease to a new tenant.
Built between 1969 and 2005, Nameoki Commons is positioned on four parcels totaling ±16.6 AC. This asset is recognized as the dominant shopping center in its respective trade area and enjoys a dominant infill location within the trade area along the primary retail node in Granite City, IL. The center contains 7 buildings with the main building comprised of a vacant big box (formerly Shop N Save) and in-line tenants, a southern outlot building with in-line tenants, two small strip buildings with in-line tenants facing Nameoki Road, an Arby’s and an Applebee’s that are on ground leases, and a rear secondary building that was recently occupied by Blessed Threads Thift Shop. Nameoki Commons benefits from its location in a high traffic area and sits at a signalized intersection, which carries over 23,000 VPD.
Nameoki Commons is easily accessible and strategically located just 15-minutes from downtown St. Louis in the heart of Granite City’s commercial district. The Property is conveniently located on a busy 4-lane thoroughfare and offers excellent ingress/egress with a signalized intersection, dedicated turning lane and multiple access points. The area is bustling with established neighborhoods and Granite City’s leading employers including U.S. Steel (±2,500 employees), ASF-Keystone/Amsted Rail (±1,400 employees), Gateway Regional Medical Center (±1,030 employees), Granite City School District #9 (±700 employees) and Kraft Foods (±500 employees), are all located within a 5-mile radius of the Property. Nameoki Commons is also located just one-block from both Granite City Senior and Junior High Schools. The Property offers abundant surface parking spaces and a large pylon sign identifies the property and tenants. The Property is the prominent retail center in the immediate area and benefits from dense demographics with a population of ±56,002 and an average household income of ±$56,032 within a 5-mile radius.
OVERVIEWInvestment
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LO C AT E D A LO N G T H E P R I M A R Y R E TA I L N O D E I N G R A N I T E C I T Y, AT A H I G H T R A F F I C S I G N A L I Z E D I N T E R S E C T I O N W I T H O V E R 2 3 K V P D ; D I V E R S E G R O U P O F A R E A
B U S I N E S S / I N D U ST R Y P R O D U C E S S I G N I F I C A N T DAY T I M E T R A F F I C
I N C LU S I V E O F T W O A B S O LU T E N N N - L E A S E S W I T H C AT E G O R Y
L E A D I N G R E STA U R A N T O P E R ATO R S A R B Y ’ S A N D
A P P L E B E E ’ S ( B OT H O N G R O U N D L E A S E S )
D O M I N A N T A R E A R E TA I L C E N T E R O F F E R I N G N AT I O N A L
R E TA I L E R S A M O R E A E ST H E T I C O P T I O N I N A T R A D E A R E A
L A R G E LY C O M P O S E D O F O L D E R P R O D U C T W I T H C O N S I D E R A B L E
D E F E R R E D M A I N T E N A N C E
C O M P L E M E N T E D B Y C O -T E N A N T S R E P R E S E N T I N G
C AT E G O R I E S T H AT C A N N OT B E D I S P L AC E D B Y A N
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SPECIF ICSProperty
A D D R E S S 3401-3551 Nameoki Rd, Granite City, IL 62040
C O U N T Y Madison County
M A R K E T St. Louis
S U B M A R K E T NE Metro Illinois Retail Submarket
O C C U PA N C Y Physical occupancy of ±35.43% as of June 30 2020
I N - P L AC E N O I ±$289,866 (In-place YE Projection for FY end of August 2021)
P R O F O R M A ±$1,697,362 (Year Five; Ending 2024)
T E N A N T S Diverse tenancy including Applebee’s, Arby’s, Church’s Chicken, H&R Block, Hibbett Sporting Goods, Cato, GNC, Sprint, Verizon, AT&T, Sally Beauty, and Clarkson Eye Care
A S S E T T Y P E Neighborhood Retail Center
PA R C E L S Four Parcels: 22-1-20-08-10-101-007, 22-1-20-08-10-101-007.001, 22-2-20-08-10-101-008, and 22-2-20-08-10-101-022
B L D G S I Z E ±155,380 SF
LOT S I Z E ±16.6 Acres; ±723,199 SF
Y E A R B U I LT The original buildings were built in 1969 and they were significantly renovated and expanded in 2005. The former Blessed Threads building was constructed in 1986 and the remaining buildings were constructed in the 2005 time frame.
PA R K I N G 840 total surface spaces
AC C E S S Primary access to the subject neighborhood is provided by Route 3, which is located ±1.5 miles west of the Property, via West Pontoon Road. This road connects to I-270 about ±2.5 miles to the north and I-55/70 to the south across from the St. Louis CBD.
LO C AT I O N Located in the suburban community of Granite City within the St. Louis MSA, about eight miles northeast of the St. Louis Central Business District. The subject is located along Nameoki Road, which is the main north and south arterial in the area. West Pontoon Road to the north and Edwardsville Road to the south are primary east/ west traffic corridors.
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C O N ST R U C T I O N Masonry/concrete ext. walls & wood/steel roof & floor structure
F O U N DAT I O N Concrete slab on compacted fill
E X T E R I O R Combination of concrete blocks with brick and EIFS facade; Retail storefronts are plate glass set in anodized aluminum frames
R O O F The majority of the buildings have flat roofs; The roof over the former Shop N Save, Arby’s and Applebee’s spaces and buildings have a rubber membrane while the rest have built-up coverings
H VAC Roof mounted
L I G H T I N G Commercial fluorescent fixtures
I N T E R I O R Textured and painted sheetrock walls
C E I L I N G S Combination textured, painted sheetrock and suspended acoustical tile
P LU M B I N G Standard plumbing
F I R E P R OT E C T I O N Wet sprinklered
S E C U R I T Y Each store is responsible for their own security
B U I L D - O U T / T I S Typical retail finishes that vary based on each tenant concept
R E ST R O O M S Each tenant space offers at least one public restrooms. The majority are standard builder’s grade with a basic finish-out with ceramic tile floors, painted drywall and ceramic wainscot walls, and either drop acoustical tile or painted drywall ceilings with overhead lighting
S I G N AG E Tenant panel pylon sign visible along Nameoki Rd
C U R B A P P E A L Asphalt paving, concrete sidewalks & curbing, pole mounted lights and low maintenance landscaping throughout
ZO N I N G C-5 Highway Commercial
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ANCHORVacant
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PLANSite
PA D S I T E S3 5 0 1 / 3 5 5 11 Applebee’s 3,826 SF2 Arby’s 3,400 SF
I N L I N E S H O P S3 4 5 3 - 3 4 5 7 3 Verizon Wireless 1,700 SF4 GNC 1,135 SF5 AT&T 1,500 SF
I N L I N E S H O P S3 4 0 1 - 3 4 0 56 VACANT 1,833 SF6A Sprint 1,833 SF6B Clarkson Eyecare 2,250 SF7 HR Block 1,510 SF8 Church’s Chicken 1,500 SF
I N L I N E S H O P S3 4 2 1 - 3 4 4 39 Cricket Wireless 1,600 SF10 3D Vapor 1,600 SF11 VACANT 1,999 SF12 Freeway Insurance 1,200 SF13 88 China 1,600 SF14 Surge Staffing 1,600 SF15 TMobile 1,600 SF16 VACANT (Former Casa Romero) 3,200 SF17 Club Fitness 6,000 SF
R E A R F R E E STA N D I N G B L D G3 4 5 132 VACANT (Former Blessed Threads) 11,800 SF
M A I N C E N T E R3 4 6 3 - 3 5 2 118 Penn Station 2,073 SF19 Key Largo Tan 1,927 SF20 VACANT (Former Hallmark) 4,800 SF21 Osaka Sushi Cafe 1,600 SF22 My Nails 1,600 SF23 VACANT 1,600 SF24 Sally Beauty Supply 1,600 SF25 Blue Sky Dental 3,200 SF26 Hibbett Sports 5,335 SF27 MO Payday Loans 1,500 SF28 VACANT 1,500 SF29 CATO 4,000 SF30 VACANT 3,000 SF31 VACANT (Former Shop ‘N Save) 69,000 SF
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M A I N C E N T E R3 4 6 3 - 3 5 2 118 Penn Station 2,073 SF19 Key Largo Tan 1,927 SF20 VACANT (Former Hallmark) 4,800 SF21 Osaka Sushi Cafe 1,600 SF22 My Nails 1,600 SF23 VACANT 1,600 SF24 Sally Beauty Supply 1,600 SF25 Blue Sky Dental 3,200 SF26 Hibbett Sports 5,335 SF27 MO Payday Loans 1,500 SF28 VACANT 1,500 SF29 CATO 4,000 SF30 VACANT 3,000 SF31 VACANT (Former Shop ‘N Save) 69,000 SF
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NAMEOKI COMMONS
AERIALProperty
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Dubbed as the “Gateway to the West,” the Greater St. Louis MSA occupies a total area of approximately 8,458 square miles, occupying portions of Missouri and Illinois. Right at its heart is the independent port city of St. Louis, MO. This sprawling MSA is considered as the largest metropolitan area in Missouri and the second in Illinois. Collectively, the Greater St. Louis MSA is home to a population of roughly 2.81 million residents and St. Louis serves as its principal city. The Greater St. Louis MSA is home to 16 counties and a diverse collection of neighborhoods. Of the seven submarkets that the Greater St. Louis MSA covers, Downtown St. Louis is considered the hottest commercial real estate market in the whole region. As of 2018, Greater St. Louis is home to the headquarters of ten of Missouri’s eleven Fortune 500 companies, six Fortune 1,000 companies, and two of the top 30 largest private companies in America, as ranked by Forbes.
ST. LOUIS MSAMetro East Area
GRANITE C ITY, I LMadison County
Granite City is a city in Madison County, IL, within the Greater St. Louis metropolitan area. The population was ±29,849 at the 2010 census, making it the second-largest city in the Metro East and Southern Illinois regions, behind Belleville. Officially founded in 1896, Granite City was named by the Niedringhaus brothers, William and Frederick, who established it as a steel making company town for the manufacture of kitchen utensils made to resemble granite. Located at the center of the St. Louis metropolitan area and in the heart of the United States, Granite City’s location is a major boon to businesses and residents alike.
Granite also has a well-trained workforce, a business-friendly atmosphere, strong infrastructure including multiple rail lines, a stellar port district on the Mississippi River, easy access to four major interstates (going in all directions) and is less than 25 minutes away from Lambert International Airport in St. Louis. Granite City’s leading employers include U.S. Steel, ASF-Keystone/Amsted Rail, Gateway Regional Medical Center, Granite City School District #9 and Kraft Foods. US Steel restarted its second furnace at their facility in Granite City, which was previously idled in 2016; the opening of 2nd furnace is anticipated to create 500 new jobs.
The Metro East area is a region in southern Illinois that comprises the eastern suburbs of St. Louis, Missouri. It encompasses 5 Southern Illinois counties in the St. Louis Metropolitan Statistical Area. St. It consists of the counties of Bond, Calhoun, Clinton, Fayette, Jersey, Madison, Marion, Monroe, Randolph, St. Clair, and Washington. The region’s most populated city is Belleville, with ±45,000 residents. The Metro East is the second largest urban area in Illinois after the Chicago metropolitan area and, as of the 2000 census, the population of the Metro East statistical area is ±702,597 residents, a figure that has risen above 700,000 in 2010. The significant growth in the Metro East is mainly due to people in smaller outlying towns in Illinois moving to the area for better economic/job opportunities.
The Metro East is connected with Missouri by the Metro Link light rail train. The Metrolink includes 11 stations on the Illinois side of St Louis, from the East St. Louis Riverfront, through Belleville Illinois, and ending at Scott Air Force Base. It links the Metro East to downtown St. Louis, area universities, downtown Clayton, and the major commercial airport, Lambert St. Louis International.
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RETAIL MARKETNE Metro Submarket
NAMEOKI COMMONS
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K E Y I N D I C ATO R S : N E M E T R O R E TA I L S U B M A R K E T
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± $ 1 3 . 8 9R E TA I L
M A R K E T R E N T
± 3 . 7 % V A C A N C Y
R AT E
Source: CoStar 1Q2020
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DEMOGRAPHICS1, 3, 5-mile
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DRIVE T IME5, 15, 30-minute
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P H I L KAT E ST: 954-745-7468 C: 305-206-1286
A DA M S K L AV E RT: 954-745-7467 C: 301-706-4619
C H A S E YO U N GLocal Specialist
T: 314-665-6062E: [email protected]
F O R M O R E I N F O R M A T I O N C O N T A C T
O F F E R I N G M E M O R A N D U M
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