$2,080,000 sheetz gas & store 17188 owens drive, king ... king george.pdf · area king george...

INVESTMENT PROPERTY OFFERING

SHEETZ GAS & STORE 17188 Owens Drive, King George, VA 22485

$2,080,000

Presented By: Kase Abusharkh 252 Abigail Circle Danville, CA 94506 (925)348-1844 [email protected]

Offering Highlights

Absolute Net Lease - No Landlord Responsibilities

10% Rent Increases Every 5 Years

45 Year Old Company with $3.8b in Annual Revenues

Irreplaceable King George Location

05/06/2008

The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

Table of Contents

1 Financial Analysis

Executive Summary

Investment Information

Rent Roll Summary

2 Additional Information

Pictures

1 . Financial Analysis


Executive Summary SHEETZ GAS & STORE

17188 Owens Drive

King George, VA 22485

List Price $2,080,000

Price Per GLA $494.53

Price per S.F. $494.53

CAP 6.01 %

GLA 4,206

Building S.F. 4,206

Percent Occupied 100.00 %

Land Acres 2.53

Sheetz, Inc. Absolute Net Leased Asset

Cross Street James Madison Parkway Tax Parcel Number

Market Virginia Sub Market King George

Year Built 1993 Building Class A

Location Class A No. of Buildings 1

Shadow Anchored No Mixed Use No

Street Frontage Route 301 Corner Yes

Zoning Type Commercial No. of Parking Spaces 25

Parking Ratio 5/1000 No.Tenants 1

No. Stories 1

Property Descriptions

Construction The property is constructed as a Sheetz, Inc. prototype gas station and store.

Parking The asset is adequately parked.

Traffic Counts Traffic counts are strong on Route 301 & Route 614 (James Madison Parkway).

Ingress/Egress The property provides excellent ingress and egress.

Major Tenants Sheetz, Inc. is a chain of gas stations/convenience stores owned by the Sheetz family. Stores are located in Maryland, North Carolina, Ohio, Pennsylvania, Virginia, and West Virginia. Sheetz, Inc was founded by Bob Sheetz in 1952 when he purchased one of his father's five dairy stores located in Altoona, Pennsylvania. Sheetz now has 344 locations across six states — Pennsylvania, Maryland, Virginia, West Virginia, Ohio and North Carolina — and more than 11,000 employees. It is regarded by many to be the fastest-growing convenience store chain in the United States. In early 2004, Sheetz opened the world's first "Convenience Restaurant" in Altoona, PA. In December 2004 they began offering the new Sheetz Mastercard PayPass with RFID technology built into the card, and was one of the first retailers of any sector to accept such technology, ahead of McDonald's, Arby's, CVS, and rival 7-Eleven, all of which rolled it out nationally in 2006.


Area King George is the county seat of King George County, Virginia. It is a unincorporated community, sometimes referred to as King George Courthouse due to its location of the King George County Courthouse. It is located within the Northern Neck George Washington American Viticultural Area wine making appellation.

Property The property is subject to a 15 year absolute net lease with Sheetz, Inc. The lease was executed in 1993 and 5+ years remaining. The lease is absolute net and calls for zero landlord responsibilities.


Investment Information SHEETZ GAS & STORE 17188 Owens Drive King George, VA 22485

Listing Price $2,080,000

2008 CAP 6.01 %

2013 CAP 6.61 %

Price Per S.F. $494.53

Price Per GLA $494.53

GLA 4,206

Building S.F. 4,206

Percent Occupied 100.00 %

Land Acres 2.53

Estimated Annualized Operating Data 2008 2013 2018 2023

Net Operating Income $125,000 $137,500 $151,250 $166,375

Highlights

Absolute Net Lease - No Landlord Responsibilities

10% Rent Increases Every 5 Years 45 Year Old Company with $3.8b in Annual Revenues

Irreplaceable King George Location


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Rent Roll Summary Tenant Name Start Date End Date Occupied

S.F. Annual

Rent S.F. Occupied

Rent % of Total

Escalations / Options / Comments

Sheetz, Inc. 6/1/1998 5/31/2013 4,206 $29.72 $125,000 100.0 % 10% rental increases every 5 years. Next bump December 2008. Four five year options.

Total 4,206 $125,000 100.0 %

2 . Additional Information


Tenant Overview

Sheetz, Inc. is a chain of gas stations/convenience stores owned by the Sheetz family. Stores are located in Maryland, North Carolina, Ohio, Pennsylvania, Virginia, and West Virginia. Sheetz, Inc was founded by Bob Sheetz in 1952 when he purchased one of his father's five dairy stores located in Altoona, Pennsylvania. In 1961, Bob hired his brother Steve to work part-time at the store. In 1963 the second store was opened under the name "Sheetz Kwik Shopper." Five years later, they opened the third store. In 1969, Steve joined Bob in the business as general manager. The brothers planned to expand at the rate of one store per year with a target of seven stores by 1972. In 1972, the company expanded from seven to fourteen stores. One year later, Sheetz added gasoline pumps and introduced self-serve gasoline to Central Pennsylvania. By 1983, Bob and Steve had opened 100 stores. The following year, Bob retired and handed over the leadership of the company to his brother Steve. In 1995, Stan Sheetz, Bob's son, became president and Steve assumed the position of Chairman of the Board. To this day, Sheetz maintains a family business with five family members serving on the Executive Committee. Sheetz now has 344 locations across six states — Pennsylvania, Maryland, Virginia, West Virginia, Ohio and North Carolina — and more than 11,000 employees. It is regarded by many to be the fastest-growing convenience store chain in the United States. In early 2004, Sheetz opened the world's first "Convenience Restaurant" in Altoona, PA. In December 2004 they began offering the new Sheetz Mastercard PayPass with RFID technology built into the card, and was one of the first retailers of any sector to accept such technology, ahead of McDonald's, Arby's, CVS, and rival 7-Eleven, all of which rolled it out nationally in 2006. On July 10, 2006 Sheetz became Pennsylvania's second retail chain to offer E85 ethanol-based fuel alternative at the select stations. Sheetz started off offering food products through their signature "MTO" name, which stands for "Made To Order." By 1999, Sheetz was selling 10,000 MTO units a day. Sheetz now hires and trains baristas for their newest brand of "Sheetz Bros. Coffeez", which are designed to be higher-grade coffee than typically found in convenience stores. With the introduction of the "Convenience Restaurant" concept, they have expanded their menu vastly. Customers can purchase made-to-order sandwiches and hot dogs, as well as pizza, panini grilled sandwiches, breakfast items, salads and chili. Italian gelato iced cream, and french fries are also offered at certain locations. During the mid-1990's, Sheetz also sold It! Cola, the chain's own private-label brand of soft drinks available in cans, bottles, and as fountain drinks. Despite a cult following, the drink was discontinued for unknown reasons and the fountains were replaced with Pepsi products. The chain now has both Pepsi and Coca-Cola products in the fountains, though in older stores with fewer fountain spots available it is still predominantly Pepsi products, with Coca-Cola and Diet Coke as the only Coke-related options. For more information, visit www.sheetz.com


Additional Photo

Additional Photo


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Aerial Photo


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Location Map


Demographics Report 17188 Owens Drive King George, VA 22485

1.00 Mile Ring

3.00 Mile Ring

5.00 Mile Ring

POPULATION 1990 Population 634 3,136 4,931

2000 Population 754 3,866 5,684 % Population Change 1990-2000 18.93 % 23.28 % 15.27 %

2007 Total Population 975 5,093 7,418 2012 Total Population 1,204 6,261 9,180 % Population Change 2000-2007 29.31 % 31.74 % 30.51 % % Population Change 2007-2012 23.49 % 22.93 % 23.75 % 2007 Total Households 362 1,604 2,383 2012 Total Households 416 1,848 2,773 % Households Change 2000-2007 15.29 % 17.68 % 18.91 % % Households Change 2007-2012 14.92 % 15.21 % 16.37 % 2007 White Population 688 3,612 5,276 2007 Black Population 227 1,060 1,601 2007 American Indian/Alaska Native 3 19 30 2007 Asian/Hawaiian/Pacific Islander 16 90 137 2007 Other Population (Incl 2+ Races) 41 313 374 2007 Hispanic Population 31 269 311 2007 Non-Hispanic Population 944 4,825 7,107 2007 Per Capita Income $21,015 $17,933 $19,626 2007 Median Household Income $43,260 $45,859 $48,060 2007 Average Household Income $56,600 $56,940 $61,094 2007 Household Income < $10,000 17 66 96 2007 Household Income $10,000-$14,999 21 87 124 2007 Household Income $15,000-$19,999 28 106 135 2007 Household Income $20,000-$24,999 23 99 151 2007 Household Income $25,000-$29,999 36 143 182 2007 Household Income $30,000-$34,999 16 70 108 2007 Household Income $35,000-$39,999 25 107 134 2007 Household Income $40,000-$44,999 23 103 147 2007 Household Income $45,000-$49,999 30 125 187 2007 Household Income $50,000-$59,999 52 259 355 2007 Household Income $60,000-$74,999 41 212 347 2007 Household Income $75,000-$99,999 27 123 254 2007 Household Income $100,000-$124,999 10 37 50 2007 Household Income $125,000-$149,999 6 32 58


2007 Household Income $150,000-$199,999 5 25 32 2007 Household Income $200,000-$249,999 1 5 9 2007 Household Income $250,000-$499,999 1 6 14 2007 Household Income $500,000+ 0 0 0 2007 Average Household Size 2.83 3.05 3.01 2007 Total Owner Occupied Housing Units 211 818 1,451 2007 Total Renter Occupied Housing Units 135 787 946 2007 Total Daytime Population 2,626 7,483 9,122 2007 Total Daytime Work Population 1,698 3,980 4,513 2007 Total Establishments 34 164 217

HOUSEHOLDS 1990 Households 255 1,092 1,648

2000 Households 314 1,363 2,004 % Households Change 1990-2000 23.14 % 24.82 % 21.60 %

$2,080,000 sheetz gas & store 17188 owens drive, king ... king george.pdf · area king george...

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