1751 airport road, allentown, pa - exp realty advisors · lessee is a subsidiary of bridgestone...
TRANSCRIPT
New, NN, 15-Year, Corporate Lease w/ 6.5% Rent Increases Every 5-Years BFS Retail & Commercial Operations, LLC (Lessee) Operates 2,200+ Stores w/ 20,000+ Employees Lessee is a Subsidiary of Bridgestone Corporation, the World’s Largest Tire Maker, S&P Rated: BBB+ Adjacent to Target, Sam’s Club and New Wal-Mart Shopping Center Under Development Across the Street Adjacent to Lehigh International Airport | 847,256 Passengers 2007 5 Miles from Cedar Crest College & Muhlenberg College Off Route 22 | 91,664 Cars / Day 50 Miles North of Philadelphia | 90 Miles West of New York City Population 246,000 within 5-Mile Trade Area
EXCLUSIVE LISTING AGENT:
1751 Airport Road, Allentown, PA
2009 Construction| BFS Retail & Commercial Operations, LLCdba Firestone Complete Auto Care
ADT: 29,771 VPD
Subject Property
Airport Road- ADT: 29,771
Airport CenterShopping Plaza
Subject Property
EXP Realty Advisors, Inc. (“Agent”) has been engaged as the exclusive agent for the sale of the building located at 1751 Airport Road in Allentown, Pennsylvania, dba Firestone Complete Auto Care (the“Property”), by the owner of the Property (“Seller”). The Property is being offered for sale in an “as-is, where-is” condition and Seller and Agent make no representations or warranties as to the accuracy ofthe information contained in this Offering Memorandum. The enclosed materials include highly confidential information and are being furnished solely for the purpose of review by prospective purchasersof the interest described herein.
The enclosed materials are being provided solely to facilitate the prospective investor’s own due diligence for which it shall be fully and solely responsible. The material contained herein is based oninformation and sources deemed to be reliable, but no representation or warranty, express or implied, is being made by Agent or Seller or any of their respective representatives, affiliates, officers,employees, shareholders, partners and directors, as to the accuracy or completeness of the information contained herein. Summaries contained herein of any legal or other documents are not intended tobe comprehensive statements of the terms of such documents, but rather only outlines of some of the principal provisions contained therein. Neither the Agent nor the Seller shall have any liabilitywhatsoever for the accuracy or completeness of the information contained herein or any other written or oral communication or information transmitted or made available or any action taken or decisionmade by the recipient with respect to the Property. Interested parties are to make their own investigations, projections and conclusions without reliance upon the material contained herein.
Seller reserves the right, at its sole and absolute discretion, to withdraw the Property from being marketed for sale at any time and for any reason. Seller and Agent each expressly reserves the right, at theirsole and absolute discretion, to reject any and all expressions of interest or offers regarding the Property and/or to terminate discussions with any entity at any time, with or without notice. This offering ismade subject to omissions, correction of errors, change of price or other terms, prior sale or withdrawal from the market without notice. Agent is not authorized to make any representations or agreementson behalf of Seller. Seller shall have no legal commitment or obligation to any interested party reviewing the enclosed materials, performing additional investigation and/or making an offer to purchase theProperty unless and until a binding written agreement for the purchase of the Property has been fully executed, delivered, and approved by Seller and any conditions to Seller’s obligations hereunder havebeen satisfied or waived.
By taking possession of and reviewing the information contained herein, the recipient agrees that (a) the enclosed materials and their contents are of a highly confidential nature and will be held and treatedin the strictest confidence and shall be returned to Agent or Seller promptly upon request; and (b) the recipient shall not contact employees or tenants of the Property directly or indirectly regarding anyaspect of the enclosed materials or the Property without the prior written approval of the Seller or Agent; and (c) no portion of the enclosed materials may be copied or otherwise reproduced without theprior written authorization of Seller and Agent.
TABLE OF CONTENTS - DISCLAIMER | 2
TABLE OF CONTENTS
PAGE 4: SITE PLAN
PAGES 5-7: AERIAL PHOTOGRAPHS
PAGE 8: MARKET OVERVIEW
PAGE 9: LOCATION MAPS & DEMOGRAPHICS
PAGE 1: COVER
PAGE 3: INVESTMENT OVERVIEW - LEASE OVERVIEW - TENANT OVERVIEW
PAGE 2: TABLE OF CONTENTS - DISCLAIMER
CONFIDENTIAL MEMORANDUM & DISCLAIMER
Representative PhotoSubject Property
BRIDGESTONE RETAIL OPERATIONS, LLC (“BSRO”)Name Changed From BFS Retail & Commercial Operations, LLC in January 2009
World’s Largest Chain of Company Owned Auto Care Centers2,200 Firestone Auto Care, Wheel Works, Tires Plus, Expert Tire - Operate Under BSRO
HQ in Bloomington, IL | Employees Nearly 22,000 PeopleSubsidiary of Bridgestone Corporation - S&P Rating: BBB+
Automotive service is the largest part of Bridgestone Retail Operations, LLC's business,accounting for approximately 50 percent of sales with tire and financial services making up therest. Bridgestone Firestone North American Tire manufactures Bridgestone, Firestone, andDayton truck tires along with tires for virtually every wheeled vehicle made.
Harvey S. Firestone (1868-1938) founded The Firestone Tire & Rubber Company in Akron, Ohio,in August 1900, and started marketing solid rubber tires for carriage wheels. Firestone joined theretail store arena offering basic car service and tire sales in the mid-1920s when the originalFirestone Service Centers were opened. The 1940s saw the emergence of the Firestone Home &Auto Store - a store concept of a one-stop retailer offering everything from automotive servicesand tires to large household appliances, televisions, toys, bicycles, lawnmowers and evenoutboard motors with the Firestone name brand affixed. The evolution of the retail storescontinued with the complete Tire & Service Center opening in the 1960s offering expandeddiagnostic under-car and under-hood service.
In the late 1970s the company, in an effort to re-focus its business solely on automotive serviceand tire sales, began to phase out the sale of all non-auto related merchandise. Shortlythereafter, in 1981, the Firestone MasterCare Car Service concept was introduced andestablished as a premier brand of quality service being delivered to customers in a consistentand distinctive manner. Bridgestone Corporation, founded in 1931 in Kurume, Japan, purchasedFirestone in 1988, transforming the company into the world's largest manufacturer of tires andother rubber products. Bridgestone and Firestone operations in the Americas were consolidatedin 1990 as Bridgestone/Firestone, Inc.
Bridgestone/Firestone, Inc. initiated a series of changes to its corporate structure in December2001, reorganizing its operations in the Americas under a holding company, BridgestoneAmericas Holding, Inc., and several operating subsidiaries. The largest of these operatingsubsidiary companies is Bridgestone Retail Operations, LLC. In 2001 Bridgestone/Firestone alsoannounced its majority ownership stake in Morgan Tire & Auto, Inc. (MTA), then the nation'ssecond largest independent retailer of tires. Responsibility for MTA was shifted to BridgestoneRetail Operations, LLC following the reorganization of Bridgestone/Firestone. Today, BridgestoneRetail Operations, LLC and its subsidiaries employ approximately 22,000 teammates in NorthAmerica. Bridgestone Retail Operations, LLC consists of more than 2,200 company-ownedconsumer and commercial stores in the United States as well as the company's own credit cardoperations. The store channels include Firestone Complete Auto Care, Morgan Tire / Tires Plus,Expert Tire, Commercial & Farm, and Mark Morris.
Today Bridgestone Retail Operations, LLC operates the largest number of company-owned full-line automotive retail generalist stores in the world. The above information is fromwww.bsro.com
INVESTMENT OVERVIEW - LEASE OVERVIEW - TENANT OVERVIEW | 3
LEASE OVERVIEW
Lease Type: NN | Landlord responsible for roof, structure and parking lot repair & replacement
Start Date: August 3, 2009
Initial Lease Term: Fifteen (15) years
Tenant: BFS Retail & Commercial Operations, LLC dba Firestone Complete Auto Care
Rent Increases: 6.5% every five (5) years
August 2009 - 2014 Annual Rent: $234,115 / $30.59 PSF
August 2014 - 2019 Annual Rent: $249,332 / $32.57 PSF
August 2019 - 2024 Annual Rent: $265,539 / $34.69 PSF
August 2024 - 2029 Annual Rent (Option 1): $282,799 / $37.04 PSF
August 2029 – 3034 Annual Rent (Option 2): $301,181 / $39.48 PSF
August 3034 - 3039 Annual Rent (Option 3): $320,757 / $42.01 PSF
August 3039 - 3044 Annual Rent (Option 4): $341,607 / $44.74 PSF
Options to Renew: Four (4), five (5) year options
Leasable Area: An approximately 7,635 SF building on approximately 1.8 Acres of land
PRICE: $3,230,000CAP RATE: 7.25%
BUILDING AREA: 7,635+/- Square Feet
LAND AREA: 1.3 +/- AcresOCCUPANCY: 100% | Single TenantYEAR BUILT: 2009OWNERSHIP: Fee Simple InterestADDRESS: 1751 Airport Road, Allentown, PA
AERIAL | 6
Valley Plaza
Lehigh Valley International Airport
Lehigh Valley Industrial Park 1
Lehigh Valley Industrial Park 2
TRADE AREA AERIAL | 7
Lehigh Valley International Airport
Subject Property
Lehigh Valley Mall
White Hall Mall
Lehigh Shopping Center
Airport Center
Philadelphia (50 Miles)
New York (90 Miles)
1751 Airport Road, Allentown, PA
IMMEDIATE TRADE AREA
The subject property is at the intersection Airport Road and Lloyd Street, a“Y" shaped intersection about one-half mile from the interchange of Route 22and Airport Road in Allentown, Pennsylvania. The interchange of Route 22and Airport Road is significant to the area, as both routes are dominantregional and local nodes with attracting residents that are moving to the newhousing developments to the west along the Route 22 corridor.
The subject property is situated in the heart of the Airport Road retailcorridor, surrounded by other retail properties. A new power centeranchored by Target and Sam's Club is being developed north of the site,diagonally and is partially open at this time. There are several other lesssignificant shopping centers along Airport Road including Valley Plaza,anchored by Ollie's Bargain Outlet and a CVS/pharmacy anchored shoppingstrip as well. A BJ’s Wholesale Club is also on the same side of the street,slightly to the north. In combination with the new power center, thesecenters have significant retail draw off of Route 22 and will always make thisa valuable retail location. Low costs of living and a short hour commute have encouraged residence to
settle in the area. Over 1,200 residential units are planned or underconstruction in the surrounding trade radius. Presently, the Allentown-Bethlehem Metropolitan Statistical Area, comprised of Carbon, Lehigh andNorthampton counties, is the third largest urbanized area in thecommonwealth, with population estimated at 611,764. Only the Philadelphiaand Pittsburgh areas have more residents.
Two four-year colleges, Cedar Crest College and Muhlenberg College, arelocated in Allentown. Commercial airline service to and from the city isavailable through Lehigh Valley International Airport, adjacent to the subjectproperty.
Allentown holds historical significance as the location where the Liberty Bellwas successfully hidden from the British during the American RevolutionaryWar.
MARKET OVERVIEW | 8
ALLENTOWN, PA
Allentown is located in Lehigh County,Pennsylvania. It is Pennsylvania's thirdmost populous city, after Philadelphiaand Pittsburgh. It is the county seat ofLehigh County. Located on the LehighRiver, Allentown is the largest of threeadjacent cities that make up a region ofeastern Pennsylvania and western NewJersey known as the Lehigh Valley, withthe cities of Bethlehem and Eastonnearby. Allentown is 60 miles north ofPhiladelphia, the sixth most populouscity in the United States and 90 mileswest of New York City, the nation'slargest city. This desirable location hasfueled a influx of population from NewJersey and the New York Metro area.
LOCATION MAPS – DEMOGRAPHICS | 9
2009 DEMOGRAPHIC SNAPSHOT
Category 1-Mile 3-Mile 5-Mile
Population: Total Population 7,495 95,226 251,893
Male Population 48.5% 48.3% 48.2%
Female Population 51.5% 51.7% 51.8%
Median Age 41.8 37.3 37.6
Population Density (per sq. mi.) 2,380.1 3,359.8 3,199.5
Employees 8,552 66,110 139,022
Establishments 550 4,465 10,209
Income: Median HH Income $49,118 $44,373 $46,352
Per Capita Income $24,614 $21,073 $22,780
Average HH Income $54,969 $52,301 $55,299
Households: Total Households 3,243 36,791 98,929
Average Household Size 2.3 2.5 2.4
Household Growth 1990 - 2000 -0.6% 0.3% 2.7%
Housing: Owner Occupied Housing Units 48.4% 50.7% 53.6%
Renter Occupied Housing Units 41.6% 40.8% 39.6%
Vacant Housing Units 10.0% 8.5% 6.8%