seminary square new construction kohl’s anchored center · 2017-07-12 · . market profile...

Seminary Square - New Construction Kohl’s Anchored Center

For investment information:J. Tyson Glasser, CCIM • Investment Sales [email protected] • 864.263.5427 o • 404.435.6312 c

2470-2474 Veterans Drive, Galesburg, IL 61401 · 4.60 Acres · 48,825 SF · $8,010,000 · 6.90% Cap Rate

Table of Contents

Property Cover...............................................1 Table of Contents..........................................2 Investment Highlights.................................3 Aerial..................................................................4 Site Plan............................................................5 Rent Roll & Cash Flow..................................6 Tenant Profiles................................................7 Market Profile..............................................8-9 Demographics.......................................10-12 Contact Information..................................13

• 2016 class A construction in the new development area of the market and 100% leased to 3 national credit tenants

• Long term corporate leases with various rent bumps and multiple renewal options

• Minimal property management with Kohl’s responsible for CAM

• Anchored by Kohl’s (NYSE: KSS, S&P: BBB-) and shadow anchored by Walmart, Menards, Galesburg Toyota

• Located 2.5 miles from downtown Galesburg and 2 miles west of I-74

• Directly across US Hwy 34 from St. Mary Medical Center, a 99-bed acute care hospital serving a 7 county region

• Galesburg is the county seat of Knox County and home to Carl Sandburg and Knox Colleges totaling about 4,800 students

Investment Highlights

Aerial

Site Plan

E

Rent Roll & Cash Flow

2017 Cash Flow

Base Rents $563,912.50Reimbursements $148,916.25Administrative Fees $0.00Total Income $712,828.75Vacancy Factor (0%) $0.00Effective Income $712,828.75CAM/Taxes/Insurance ($3.05) $148,916.25Management Fee (2% of Base Rents) $11,278.25Total Expenses $160,194.50Net Income $552,634.25

Suite Tenant Square Feet

Lease Start

LeaseEnd

Rent PSF Annual Rent Rent Bumps CAM/Tax/

InsuranceAdmin.

FeeOptions

(5 years each)

2470Kohl’s Illinois, Inc.

(Kohl’s Department Stores, Inc. guaranty)

36,325 5/24/16 1/31/32 $10.50 $381,412.50 10% Every 5 Years NNN(See Note 1) 0%

Option 1: $13.34Option 2: $14.01Option 3: $14.71Option 4: $15.44Option 5: $16.22Option 6: $17.03

2472 PSP Stores, LLC 7,500 11/4/16 11/30/26 $15.00 $112,500.00 $1.00 PSF in Year 6 NNN 0%

Option 1: $17.00Option 2: $18.00Option 3: $19.00Option 4: $20.00

2474 Shoe Carnival, Inc. 5,000 10/17/16 11/30/26 $14.00 $70,000.00 $1.00 PSF in Year 6 NNN 0%Option 1: $16.00Option 2: $17.00Option 3: $18.00

TOTALS 48,825 $563,912.50

Notes: 1) Kohl’s is responsible for 100% of shopping center CAM. Landlord pays Kohl’s $12,500/year for CAM expenses which increases 3% annually.

Tenant Profiles

Pet Supplies Plus was founded in 1988 in Redford, Michigan by Harry Shallop and Jack Berry. It is a privately held pet supply retailing corporation with a major presence in the US. As of 2005, it was the third largest specialty pet food retailer in the US. The company began adding franchise locations in the Midwest, expanding into the northeastern and southern states during the late 1990s. In 2015, Pet Supplies Plus store locations consisted of over 325 stores in 25 states measuring about 10,000 square feet. Within five years after opening the first store, the founders had opened stores in 30 more locations. Not long after, the two were joined by a third partner, Harvey Solway. In September, 2010, the firm was sold to Irving Place Capital, a private equity group. Day-to-day operations continue to be run by the management team in place before the sale and the company’s top managers continue to own a share in the company, while many of the stores are independently owned franchised sites. www.PetSuppliesPlus.com

“At Kohl’s, our purpose is to inspire and empower families to lead fulfilled lives.” Kohl’s Corporation, d.b.a. Kohl’s, is an American department store retail chain. Headquartered in Menomonee Falls, WIsconsin (a suburb of Milwaukee), it operates over 1,162 stores in 49 states. The first Kohl’s store was a supermarket founded by Maxwell Kohl in Milwaukee in 1946. The company’s first department store opened in September 1962. British-American Tobacco Company took a controlling interest in the company in 1972 and in 1979 the Kohl family left the management of the company. A group of investors purchased the company in 1986 from British-American Tobacco and took it public in 1992. Kohl’s is America’s largest department store chain by the number of stores as of February 2013—surpassing its biggest competitor, J.C. Penney in May 2012. The chain was the 20th-largest retailer in the United States in 2013 in terms of revenue. As of 2013, Kohl’s is the second largest U.S. department store company by retail sales. www.Kohls.com

Shoe Carnival is a retailer of family footwear in the United States. The company operates over 370 stores throughout the Midwest, South, and Southeast regions. It was founded by David Russell in 1978 and is headquartered in Evansville, IN. The company’s majority owner is J. Wayne Weaver, former owner of the Jacksonville Jaguars. SThe main difference in Shoe Carnival stores is its concept. The Shoe Carnival Concept is creating an urgency to buy through limited time promotions and the microphone. In 2006 the company began construction on a $40 million corporate headquarters and distribution center. In 2007, the retailer announced record sales and plans to open 25 additional stores. In 2011, the company announced that it would be offering online shopping to customers. www.shoecarnival.com

Market ProfileGalesburg & Knox County

Economy

The City works cooperatively with the Knox County Area Partnership for Economic Development to position Galesburg for economic growth and prosperity. Why Knox County? Strategic Assets - Transportation infrastructure, strong educational institutions and a robust water supply are just a few of the Knox County Area’s competitive advantages. A Pro-Business Community - We’ve cut the red tape and can get your project up and running faster than our competitors. Midwest Pride - Hard work is in our DNA. Come see why our Midwest work ethic beats out other regions for productivity and value. (Sources - Galesburg, IL and Knox County Websites)

Healthcare

OSF St. Mary’s Medical Center - Dedicated to providing the very best care for each and every patient and family member who chooses us for their care. OSF St. Mary has been a cornerstone of the Galesburg community since 1909. OSF St. Mary serves a seven county area in west central Illinois including Knox, Warren, Henry, Mercer, Henderson, McDonough and Fulton counties. Since the doors first opened, the Mission has been to provide patient-focused care that exemplifies individuality and hospitality for all we serve. OSF St. Mary Medical Center is a 99-bed acute care hospital providing state-of-the-art therapeutic, diagnostic, medical and surgical support. Additionally, it is a 24-hour Level II Trauma Center which ensures the community has the access to intensive emergency medical services and board-certified emergency medical physicians. Galesburg Cottage Hospital - a 173 bed facility that provides complete inpatient, outpatient and emergency care. Galesburg Cottage Hospital has received The Joint Commission seal of accreditation and is the only hospital in westcentral Illinois to have been named a Top Performer, and is the only western Illinois hospital to be accredited by the Society of Cardiovascular Patient Care as a Chest Pain Center. Our Level II Trauma Emergency Department is approved for pediatrics by the State of Illinois and is also a Primary Stroke Center as certified by The Joint Commission. With over 70 medical staff members representing a cross section of specialties, Galesburg Cottage Hospital has the area’s only Wound Healing Center with hyperbaric oxygen chambers, Surgical Weight Loss Center, a hospital- based skilled care unit, an OB unit with private birthing suites and a renal dialysis center among other specialized services. Galesburg Cottage Hospital is celebrating more than 120 years of caring service to Western Illinois residents.

Market ProfileEducation

Knox College - Founded in 1837. Over 1,400 students attend Knox College. It is a community of individuals from diverse backgrounds challenging each other to explore, understand and improve ourselves, our society and our world. The commitment to put learning to use to accomplish both personal and social goals dates back to the founding of the College in 1837. We take particular pride in the College’s early commitment to increase access to all qualified students of varied backgrounds, races and conditions, regardless of financial means.

Carl Sandburg College - Established by authority of the Illinois Community College Act of 1965 and was approved by voters in a September 1966 referendum. One year later, in September 1967 classes were first held. The college now enrolls over 3,300 Students.37% of college-bound students in the district attend Sandburg. Average class size is 16 students. The average age of students at Sandburg is 30. Students most commonly describe Sandburg as comfortable, reasonably priced, academic & career oriented.

Transportation

Rail action 01Rail: 7 class-1 rail lines enter Galesburg and converge at the BNSF classification yard in Southeast Galesburg. Strategic grade separations within the city allow trains to get in and out of the city quickly and easily without disrupting local automobile traffic. Over 100 trains enter and leave the community each day.

Interstate: The Knox County Area is served by Interstate 74 running from Indianapolis and the Quad Cities and by Interstate 80 connecting Des Moines and Chicago, In addition, US-34 serves the area as well as US-150.

Air Service: Galesburg is conveniently located approximately 45 minutes from both Peoria International Airport and Quad Cities International Airport. Residents and businesses can connect with direct flights to more than a dozen cities through these two airports.

Percent19.0%16.3%9.1%

14.0%17.6%10.7%9.2%2.7%1.5%

Number Percent1,889 5.1%1,979 5.0%1,834 5.1%2,434 6.3%2,879 7.9%4,321 13.4%3,934 11.2%4,712 10.9%4,518 12.6%2,969 11.9%2,218 6.9%1,147 3.6%

Number Percent28,671 76.7%3,715 13.2%

83 0.3%296 1.6%

9 0.0%960 4.0%

1,099 4.0%2,298 9.8%

©2016 Esri Page 2 of 63,289Hispanic Origin (Any Race) 6.6% 2,820 8.3%1,348Two or More Races 3.2% 1,212 3.6%

9Some Other Race Alone 2.8% 1,180 3.5% 1,356Pacific Islander Alone 0.0% 9 0.0%

112Asian Alone 0.8% 438 1.3% 551American Indian Alone 0.2% 99 0.3%

25,768Black Alone 10.7% 4,129 12.1% 4,433White Alone 82.3% 27,059 79.3%

Race and Ethnicity Percent Number Percent NumberCensus 2010 2016 2021

2,31685+ 3.3% 1,211 3.5% 1,212

75 - 84 6.4% 2,136 6.3%

4,24665 - 74 8.5% 3,575 10.5% 4,01155 - 64 13.0% 4,633 13.6%

3,75145 - 54 13.5% 4,055 11.9% 3,65435 - 44 11.3% 3,761 11.0%

2,64525 - 34 12.4% 4,476 13.1% 4,50620 - 24 8.3% 2,831 8.3%

1,72015 - 19 7.0% 2,206 6.5% 2,12910 - 14 5.3% 1,737 5.1%

1,7215 - 9 5.7% 1,743 5.1% 1,6670 - 4 5.4% 1,762 5.2%

Population by Age Percent Number Percent NumberCensus 2010 2016 2021

$55,965Per Capita Income $21,895 $23,356Average Household Income $52,191Median Household Income $38,513 $39,974

364$200,000+ 197 1.4% 209$150,000 - $199,999 282 2.0%

1,442$100,000 - $149,999 1,086 7.9% 1,243$75,000 - $99,999 1,415 10.3%

1,886$50,000 - $74,999 2,429 17.7% 2,369$35,000 - $49,999 2,102 15.3%

2,196$25,000 - $34,999 1,566 11.4% 1,224$15,000 - $24,999 2,010 14.6%

Number<$15,000 2,669 19.4% 2,559

Households by Income Number Percent2016 2021

Median Household Income 0.75% 1.32% 1.89%Owner HHs -0.49% 0.15% 0.73%Families -0.53% 0.11% 0.72%Households -0.39% 0.21% 0.79%Population -0.32% 0.22% 0.84%

Trends: 2016 - 2021 Annual Area State NationalMedian Age 40.4 41.1 41.3Renter Occupied Housing Units 5,244 5,494 5,431Owner Occupied Housing Units 8,868 8,263 8,062Average Household Size 2.20 2.20 2.21Families 8,031 7,711 7,507Households 14,112 13,757 13,493Population 34,834 34,126 33,576

Summary Census 2010 2016 2021

2470 Veterans Dr, Galesburg, Illinois, 61401 Prepared by EsriRing: 5 mile radius Latitude: 40.97637

Longitude: -90.35957

Demographic and Income Profile

Percent16.8%15.4%8.8%

13.7%18.1%11.8%11.0%3.0%1.5%

Number Percent2,267 4.9%2,527 5.0%2,400 5.2%2,955 6.2%3,219 7.2%5,098 12.8%4,916 11.1%5,991 11.2%5,821 13.2%3,900 12.6%2,752 7.1%1,328 3.4%

Number Percent36,824 80.8%3,753 10.6%

92 0.3%310 1.4%11 0.0%

985 3.3%1,199 3.6%2,408 8.2%

©2016 Esri Page 4 of 63,478Hispanic Origin (Any Race) 5.6% 2,972 7.0%1,507Two or More Races 2.8% 1,342 3.1%





2,99485+ 3.1% 1,416 3.3% 1,437

75 - 84 6.4% 2,716 6.4%

5,59465 - 74 9.0% 4,712 11.0% 5,31255 - 64 13.5% 6,041 14.1%

4,68345 - 54 13.9% 5,253 12.3% 4,73235 - 44 11.4% 4,727 11.1%

3,03125 - 34 11.8% 5,286 12.4% 5,42420 - 24 7.5% 3,253 7.6%

2,21715 - 19 6.8% 2,719 6.4% 2,63810 - 14 5.6% 2,296 5.4%

2,0915 - 9 5.9% 2,185 5.1% 2,0930 - 4 5.3% 2,137 5.0%



504$200,000+ 241 1.4% 258$150,000 - $199,999 388 2.2%

2,009$100,000 - $149,999 1,594 9.2% 1,880$75,000 - $99,999 1,966 11.4%

2,330$50,000 - $74,999 3,185 18.4% 3,081$35,000 - $49,999 2,651 15.3%

2,626$25,000 - $34,999 1,897 11.0% 1,495$15,000 - $24,999 2,390 13.8%

Number<$15,000 2,979 17.2% 2,867








Percent15.5%14.3%9.8%

13.1%19.0%13.0%10.9%2.9%1.5%

Number Percent3,914 5.0%4,287 5.1%4,334 5.5%5,143 6.6%5,123 6.9%8,112 11.8%8,283 11.1%

10,356 11.5%9,726 13.8%6,623 12.6%4,378 7.0%1,978 3.0%

Number Percent64,093 84.9%4,115 7.2%

143 0.3%437 1.1%20 0.0%

1,836 3.6%1,612 3.0%4,128 8.3%5,967Hispanic Origin (Any Race) 5.7% 5,074 7.0%

2,140Two or More Races 2.2% 1,872 2.6%





4,99685+ 2.7% 2,113 2.9% 2,169

75 - 84 6.1% 4,457 6.2%

9,90565 - 74 9.2% 7,972 11.0% 9,08855 - 64 13.5% 10,303 14.3%

7,99845 - 54 14.3% 9,185 12.7% 8,24435 - 44 11.5% 8,030 11.1%

4,93425 - 34 11.2% 8,402 11.6% 8,46220 - 24 7.1% 5,272 7.3%

3,98315 - 19 7.1% 4,856 6.7% 4,75910 - 14 6.0% 4,081 5.7%

3,6155 - 9 5.9% 3,827 5.3% 3,7000 - 4 5.4% 3,711 5.1%



852$200,000+ 384 1.3% 430$150,000 - $199,999 657 2.3%

3,778$100,000 - $149,999 2,627 9.0% 3,145$75,000 - $99,999 3,571 12.3%

3,798$50,000 - $74,999 5,697 19.6% 5,500$35,000 - $49,999 4,577 15.7%

4,144$25,000 - $34,999 3,248 11.2% 2,829$15,000 - $24,999 3,767 12.9%

Number<$15,000 4,572 15.7% 4,478








©2017 RealtyLink, LLC, We have obtained the contained information from sources we believe are reliable. We have not however verified that all information is accurate and make no guarantee, warranty or representation of it. The information is subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing or withdrawal without notice, and it is not a substitute for a thorough due diligence investigation. We include opinions, projections, estimations and assumptions for example purposes only. This information may not represent current or future performance of the property. Seek legal advise and conduct due diligence if exact numbers are desired.

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Investment Contacts:

J. Tyson Glasser, CCIMInvestment Sales [email protected] o • 404.435.6312 c

550 S. Main Street, Suite 300 • Greenville, SC 29601864.242.4008 p • 864.232.0160 f • www.REALTYLINKDEV.com

seminary square new construction kohl’s anchored center · 2017-07-12 · . market profile...

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