vacant automotive building norton’s...was renovated in 2008. back building includes bathroom,...

N O R T O N ’ S C A R S T E R E O

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

3 2 9 8 A s h l e y P h o s p h a t e R d N o r t h C h a r l e s t o n , S C 2 9 4 1 8

Vacant Automotive Building

ANI PAULSONAssociate

Charleston, South Carolina OfficesDirect: (843) 952-2268

[email protected]: SC 108539

E X C L U S I V E L Y L I S T E D B Y

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

C O N F I D E N T I A L I T Y & D I S C L A I M E RThe 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. Marcus & Millichap is a service

mark of Marcus & Millichap Real Estate Investment Services, Inc.

© 2018 Marcus & Millichap. All rights reserved.

N O N - E N D O R S E M E N T N O T I C EMarcus & 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.

A L L P R O P E R T Y S H O W I N G S A R E B Y A P P O I N T M E N T O N L Y.P L E A S E C O N S U L T Y O U R M A R C U S & M I L L I C H A P A G E N T F O R M O R E D E T A I L S .

OFFICES THROUGHOUT THE U.S. AND CANADAwww.marcusmillichap.com

ANI PAULSONAssociate

Charleston, South Carolina OfficeDirect: (843) 952-2268


TABLE OF CONTENTS

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1 P R O P E R T Y D E S C R I P T I O N / / 1 42

Ani Paulson based in Charleston, SC, focuses on the analy-sis and disposition of office and industrial properties in the

South-East region with an emphasis on exclusive seller repre-sentation. Ani provides her clients access to the largest pool of qualified investors nationally and internationally, creating maximum exposure for their properties and a competitive bidding environment. She is committed to the highest level

of client service, direct involvement in every transaction and superior underwriting. As an investor herself, Ani Paulson

aligns with the client’s goals, which enables her to help inves-tors to achieve their goals and grow their investment returns.

Ani focuses on building advisory relationships by helping her clients achieve their real estate objectives and by keeping them informed of transactions and trends locally and nation-

ally that will affect their property decisions.

Prior joining Marcus & Millichap, Ani Paulson has been an investor since 2013 by acquiring franchisees and increas-

ing the net revenues. Ani obtained her B.S. from College of Charleston majoring in International Business with minor in

Global Logistics and Transportation.

A N I PAU L S O N

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap

Executive Summary

o f f e r i n g s u m m a r y

s u m m a r y o f t e r m s

i n v e s t m e n t o v e r v i e w

i n v e s t m e n t h i g h l i g h t s

s e c t i o n 1

E X E C U T I V E S U M M A R Y8 E X E C U T I V E S U M M A R Y 9

O F F E R I N G S U M M A R Y

List Price $850,000Gross Square Feet 6,120 SF

Price/SF $138.90

Number of Buildings 2

Year Built - Front Building 1971

Rentable Building Area - Front Building 1,620 SF

Year Built - Back Building 2008

Rentable Building Area - Back Building 4,500 SF

P R O P E R T Y T O U R SProspective purchasers are encouraged to visit the subject property prior to submitting offers.

However, all property tours must be arranged with the Marcus & Millichap listing agents.

At no time shall the tenants, on-site management or staff be contacted without prior

approval.

S U M M A R Y O F T E R M S

E X E C U T I V E S U M M A R Y10 E X E C U T I V E S U M M A R Y 11

I N V E S T M E N T H I G H L I G H T S

Norton’s Car Stereo is a prime investment property in North Charleston, South Carolina. Norton’s is one of a kind being one of the only automotive inventory on sale in the surrounding area. The property is 0.56 AC and includes

two buildings. Total rentable area is 6,120 SF, which has ample parking and direct access to the busiest road in North Charleston with a 65,000 traffic count per day. The back building was built in 2008 and the front building was renovated in 2008. Back building includes bathroom, break-room, car lift, and six insulated bays – sixth bay is oversized. Renovated front building includes two AC units, spacious waiting room, office, and bathroom. Both

buildings have strong electrical systems and air compression with full installation. Personal property such as car lift will be included in sale.

NORTON’S CAR STEREO

3 2 9 8 A s h l e y P h o s p h a t e R d , N o r t h C h a r l e s t o n , S C 2 9 4 1 8

High Traffic Volume - 65,000 VPD

Value Add Opportunity

Market Rents range between $15-$20 NNN

Strong Location in Charleston MSA

Population Within 3 Miles Radius - 59,000

Rapid Population Growth- 5.45% Growth in 2017

Rare Automotive Repair Listing Due to Inventory Shortage


Property Description

r e g i o n a l a n d l o c a l m a p s

s i t e p l a n

a e r i a l & p r o p e r t y i m a g e s

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P R O P E R T Y D E S C R I P T I O N14 P R O P E R T Y D E S C R I P T I O N 15


PROPERT Y DESCRIPTION // Nor ton’s Car Stereo

Number of Buildings 2Year Built/Renovated - Front Building 1 1971/2008Year Built - Back Building 2 2008Number of Bays 6Acreage 0.56 AcresExterior Construction - Front Building 1 Block MasonaryExterior Construction - Back Building 2 Butler SteelRoof Type - Front Building 1 Shingle PithcedRoof Type - Back Building 2 SteelTotal Square Footage 6,120 SF


Market Overview

l o c a t i o n o v e r v i e w

m a r k e t r e s e a r c h

d e m o g r a p h i c s

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M A R K E T O V E R V I E W24 M A R K E T O V E R V I E W 25

CHARLESTONS O U T H C A R O L I N A

P O P U L A T I O N7 6 4 , 0 0 0

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OVERVIEWCHARLESTON

Located along the Atlantic seaboard, the Charleston metro encompasses

Charleston, Berkeley and Dorchester counties in southeastern South

Carolina. A favorable business climate is helping draw companies and

workers to the region. The metro population has grown by roughly

275,000 people since 2000 and the market is forecast to receive another

64,000 people through 2022. Charleston is the largest city in the metro

with 134,200 residents, followed by North Charleston with 109,300.

§ The Port of Charleston ships 2 million TEUs annually while also providing sites for the United States Military. Joint Base Charleston consists of 231 acres in a multi-use federal facility and is home to multiple government and military tenants.

§ Manufacturing remains a vital sector of the economy with major facilities for Boeing, Volvo, Mercedes-Benz and Cummins Turbo Technologies.

§ As demand for information technology grows, so does the presence of corporations in the metro, particularly in the Charleston Digital Corridor, which houses notable companies such as Blackbaud, SPARC and CSS.

DEMOGRAPHICS

ECONOMY

METRO HIGHLIGHTS

PORT ACTIVITYThe port provides multiple shipping terminals, one of the largest container seaports on the East Coast and a cruise terminal.

TOURISM INDUSTRYThe metro’s coastal location, scenic beauty and its history are some of the factors that make Charleston a popular tourist destination.

EDUCATIONAL ATTAINMENTApproximately 33 percent of residents age 25 and older hold a bachelor’s degree, while 12 percent also hold a graduate or professional degree.

764K2017

POPULATION:

298K2017

HOUSEHOLDS:

36.62017

MEDIAN AGE:

$56,000 2017 MEDIAN

HOUSEHOLD INCOME:

U.S. Median:

37.8U.S. Median:

$56,30010.2%Growth

2017-2022*:

8.4%Growth

2017-2022*:


• Charleston employment increased over the past year as 5,100 positions were added. The construction and education and health services sectors created the most jobs, as more than 3,400 people were added to staffs.

• The unemployment rate stayed flat over the past 12 months at 3.8 percent, remaining well below the long-term average of 5.3 percent.

EMPLOYMENT

• Developers brought 120,000 square feet of retail space online in the first quarter of the year, with the largest project fully occupied by Lowe’s.

• More than 2.3 million square feet of retail space is in various stages of the construction pipeline, with delivery dates scheduled through 2020.

CONSTRUCTION

• Following four straight quarters of annual increases to the vacancy rate, vacancy plummeted to 3.1 percent in the first quarter of 2018.

• James Island-Folly Beach, West Islands and Outlying Berkeley County each posted vacancy at 2 percent or below in the first quarter, the tightest rates in the metro.

VACANCY

• Rent growth hastened over the past year, with the average advancing to $21.05 per square foot in the first quarter. Average asking rent increased 6.9 percent last year.

• Three submarkets recorded rent gains of 10 percent or more during the past year: Dorchester County, West Charleston County and Outlying Berkeley County.

RENTS

SOUTH CAROLINA METRO AREAS: CHARLESTON

increase in the average asking rent Y-O-Y

8.5%basis point decrease in vacancy Y-O-Y50square feet

completedY-O-Y

510,000increase in total employment Y-O-Y1.4%

1Q18 - 12-month trend

Competition Heats Up for Charleston Retail Assets

Outlook: A growing economy and healthytourism industry are attracting buyersfrom across the country to Charleston,creating a highly competitive biddingenvironment for available retailproperties.

VacancyRate

Y-O-YBasisPoint

ChangeSubmarket

AskingRent

Y-O-Y %Change

West Islands 1.0% -340 $26.90 0.7%

James Island-Folly Beach 1.5% 50 $19.84 1.1%

Outlying Berkeley County 2.0% -80 $15.53 11.8%

Downtown Charleston 2.2% 0 $48.34 7.9%

Greater Charleston 2.8% -10 $17.40 6.7%

North Charleston 3.0% -90 $13.62 -1.9%

Dorchester County 4.4% -160 $22.11 28.8%

East Islands-Mt Pleasant 4.8% 80 $24.89 8.2%

W Charleston County 5.0% -390 $12.13 36.3%

Overall Metro 3.1% -50 $21.05 8.5%

Submarket Trends

Lowest Vacancy Rates 1Q18

Sales Trends

SOUTH CAROLINA METRO AREAS: CHARLESTON

• Multi-Tenant: Sales remain concentrated among Class B and C assets priced between$1 million and $10 million. These properties sold for an average price per square footabove $300, with cap rates in the low- to mid-7 percent area.

• Single-Tenant: Prices dipped 4.1 percent to $315 per square foot as buyers soughtreturns near 7 percent.

*Trailing 12 months through 1Q18 over previous time periodPricing trend sources: CoStar Group, Inc.; Real Capital Analytics

* Forecast **2017-2022


• Fed raises benchmark interest rate, plans additional increases. The Federal Reserveincreased the federal funds rate by 25 basis points in late March, raising the overnight lendingrate to 1.5 percent. While the Fed noted the inflation outlook moderated recently, an upgradedeconomic forecast including tax cuts and a regulation rollback strengthened growthprojections through 2020. As a result, the Fed has guided toward at least two more rate hikesthis year, while setting the stage for up to four increases in 2019.

• Lending costs rise alongside Fed rate increase. As the Federal Reserve lifts interestrates, lenders will face a rising cost of capital, which may lead to higher lending rates forinvestors. However, greater competition for loan demand has prompted some lenders toabsorb some cost increases. While higher borrowing costs may prompt buyers to seek highercap rates, the positive economic outlook should boost rent growth above inflation over thecoming year.

• The capital markets environment remains highly competitive. While the Federal Reservehas committed to tightening policy, other major central banks have maintained easing policies.The downward pressure on rates from foreign central banks is counteracting greatereconomic growth and wider government deficits, keeping demand for fixed-incomeinvestments stable. Loan pricing resides in the mid-4 percent range with maximum leverage of70 percent. Portfolio lenders will require loan-to-value ratios closer to 65 percent with interestrates, depending on term, in the high-3 to mid-4 percent range. The passage of tax reform andrising fiscal stimulus will keep the U.S. economy growing strongly this year, while limited newconstruction and steady absorption will contain office vacancy near 14 percent.

* Through May 1stSources: CoStar Group, Inc.; Real Capital Analytics

ATLANTA METRO AREA

Capital Markets

POPULATION 1 Miles 3 Miles 5 Miles§ 2022 Projection

Total Population 5,520 63,503 149,643§ 2017 Estimate

Total Population 5,450 58,359 135,231§ 2010 Census

Total Population 4,364 50,361 118,880§ 2000 Census

Total Population 3,940 41,178 90,396§ Current Daytime Population

2017 Estimate 4,013 73,713 148,155HOUSEHOLDS 1 Miles 3 Miles 5 Miles§ 2022 Projection

Total Households 2,017 24,579 57,327§ 2017 Estimate

Total Households 1,933 22,181 51,095Average (Mean) Household Size 2.79 2.57 2.59

§ 2010 CensusTotal Households 1,561 19,244 45,248

§ 2000 CensusTotal Households 1,372 15,205 34,305

§ Occupied Units2022 Projection 2,017 24,579 57,3272017 Estimate 2,028 23,751 54,593

HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles§ 2017 Estimate

$150,000 or More 3.83% 4.28% 4.55%$100,000 - $149,000 8.47% 9.71% 11.14%$75,000 - $99,999 11.63% 12.00% 12.81%$50,000 - $74,999 22.73% 22.79% 22.00%$35,000 - $49,999 18.60% 16.89% 15.59%Under $35,000 34.74% 34.32% 33.91%

Average Household Income $58,760 $61,639 $63,124Median Household Income $46,818 $48,637 $50,546Per Capita Income $20,845 $23,518 $23,990

HOUSEHOLDS BY EXPENDITURE 1 Miles 3 Miles 5 MilesTotal Average Household Retail Expenditure $53,096 $54,013 $55,708§ Consumer Expenditure Top 10 Categories

Housing $14,354 $14,568 $14,857Transportation $10,213 $10,250 $10,466Shelter $7,641 $7,820 $7,914Food $5,561 $5,694 $5,864Personal Insurance and Pensions $4,095 $4,295 $4,443Health Care $3,688 $3,648 $3,851Utilities $3,569 $3,545 $3,600Entertainment $2,099 $2,154 $2,251Gifts $1,739 $1,632 $1,805Cash Contributions $1,694 $1,621 $1,712

POPULATION PROFILE 1 Miles 3 Miles 5 Miles§ Population By Age

2017 Estimate Total Population 5,450 58,359 135,231Under 20 28.11% 27.23% 27.60%20 to 34 Years 25.14% 29.29% 27.41%35 to 39 Years 6.90% 7.13% 7.13%40 to 49 Years 11.65% 11.96% 12.35%50 to 64 Years 18.65% 16.13% 16.11%Age 65+ 9.56% 8.26% 9.40%Median Age 32.95 31.56 32.18

§ Population 25+ by Education Level2017 Estimate Population Age 25+ 3,530 37,871 87,408Elementary (0-8) 4.58% 3.97% 3.38%Some High School (9-11) 7.34% 7.89% 7.92%High School Graduate (12) 31.15% 28.26% 28.98%Some College (13-15) 25.49% 26.29% 25.30%Associate Degree Only 13.97% 10.91% 10.49%Bachelors Degree Only 11.76% 15.32% 15.85%Graduate Degree 4.91% 6.23% 7.06%


IncomeIn 2017, the median household income for your selected geography is$46,818, compare this to the US average which is currently $56,286.The median household income for your area has changed by 15.55%since 2000. It is estimated that the median household income in yourarea will be $52,744 five years from now, which represents a changeof 12.66% from the current year.

The current year per capita income in your area is $20,845, comparethis to the US average, which is $30,982. The current year averagehousehold income in your area is $58,760, compare this to the USaverage which is $81,217.

PopulationIn 2017, the population in your selected geography is 5,450. Thepopulation has changed by 38.32% since 2000. It is estimated that thepopulation in your area will be 5,520.00 five years from now, whichrepresents a change of 1.28% from the current year. The currentpopulation is 47.04% male and 52.96% female. The median age of thepopulation in your area is 32.95, compare this to the US averagewhich is 37.83. The population density in your area is 1,735.02 peopleper square mile.

HouseholdsThere are currently 1,933 households in your selected geography. Thenumber of households has changed by 40.89% since 2000. It isestimated that the number of households in your area will be 2,017five years from now, which represents a change of 4.35% from thecurrent year. The average household size in your area is 2.79persons.

EmploymentIn 2017, there are 3,096 employees in your selected area, this is alsoknown as the daytime population. The 2000 Census revealed that55.43% of employees are employed in white-collar occupations in thisgeography, and 45.29% are employed in blue-collar occupations. In2017, unemployment in this area is 3.36%. In 2000, the average timetraveled to work was 23.00 minutes.

Race and EthnicityThe current year racial makeup of your selected area is as follows:32.27% White, 56.80% Black, 0.11% Native American and 1.72%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 10.75% of the current yearpopulation in your selected area. Compare this to the US average of17.88%.

HousingThe median housing value in your area was $132,000 in 2017,compare this to the US average of $193,953. In 2000, there were 888owner occupied housing units in your area and there were 485 renteroccupied housing units in your area. The median rent at the time was$433.

Ani Pau ls onAssociate

Charleston, South Carolina OfficeDirect: (843) 952-2268


E X C L U S I V E L Y L I S T E D B YANI PAULSON

AssociateCharleston, South Carolina Office

Direct: (843) 952-2268 [email protected]

License: SC 108539

vacant automotive building norton’s...was renovated in 2008. back building includes bathroom,...

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