offering memorandum panera bread & aspen dental
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SUBJECTPROPERTY
WESTERN PIEDMONTCOMMUNITY COLLEGE
1,834 STUDENTS560 EMPLOYEES
15,0
00 CP
D
70
SOUTH MOUNTAINS STATE PARK
267,000 VISITORS ANNUALLY
40
70
BUS
70
70
18
181
70SUBJECTPROPERTY
Mcdonalds
INDUSTRIAL
NEW CONSTRUCTION600 NEW JOBS
QUAKER MEADOW GOLF COURSE
APPROVED $195.5 MILLION EXPANSION
1,400 EMPLOYEES
BROUGHTON HOSPITALNEW $155M CAMPUS
1,400 EMPLOYEES
WESTERN PIEDMONTCOMMUNITY COLLEGE
1,834 STUDENTS560 EMPLOYEES
NORTH CAROLINA SCHOOL FOR THE DEAF
$73M EXPANSTION COMING 2021
MORGANTON HEIGHTS
11,000 CPD
9,900 CPD
19,000 CPD
15,000 CPD
46,000 CPD
LIBERTY MIDDLE538 STUDENTS
ROBERT L PATTON HIGH962 STUDENTS
FREEDOM HIGH1,214 STUDENTS
SOUTH MOUNTAINS STATE PARK
267,000 VISITORS ANNUALLY
J IVERSON RIDDLE DEVELOPMENT CENTER
1,000 EMPLOYEES
NORTH CAROLINA SCHOOL OF
SCIENCE & MATHNEW $58M CAMPUS
Rent RollTENANT GLA % OF
GLAANNUAL
RENT RENT/SF RENTCOMMENCEMENT
LEASETERM OPTIONS CHANGES ON CHANGES TO
Panera Bread 4,500 SF 56% $155,250 $34.50 Est. March/April 2019 15 Years Three, 5-Year Year 6Year 11
Option 1Option 2Option 3
$170,775$187,830$197, 235$207,090$217,440
Aspen Dental 3,500 SF 44% $112,000 $32.00 2/8/2019 10 Years Three, 5-Year Year 6Option 1Option 2Option 3
$123,200$135,520$149,065$163,975
TOTAL 8,000 SF 100% $267,250
ADDRESS:657 W. Fleming Drive, Morganton, NC 28655
Price $ 4,276,000
Cap Rate 6.25%
NOI $267,250
Gross Leasable Area 8,000 SF
Year Built 2019
Lot Size 1.908 +/- Acres REPRESENTATIVE PHOTO
Demographics• 100% Occupied by Panera Bread and Aspen Dental
• 15-Year Lease with Panera Bread, the Largest Franchisee with 280 Locations
• 10-Year Corporate Lease with Aspen Dental
• 10% Increases Every 5 Years
• Brand New 2019 Construction with a Drive-Thru, Minimal Landlord Responsibilities
• 70 Miles Northwest of Downtown Charlotte
• Serving 89,293 Residents in Burke County
• Outparcel to Walmart Supercenter, Dick’s, TJ Maxx, Ross, Belk, and Staples
• Hard Corner Location, Highly Visible to 15,000 Cars/Day Along Primary Commercial Corridor
• Strong Daytime Population, 26,866 Employees within 5 Miles
• 1.5 Miles to Western Piedmont Community College with 1,834 Students and 560 Employees
• Surrounded by Several K-12 Schools with 8,163 Students
• Down the Street from New $58 Million North Carolina School of Science & Math Campus
• Minutes to New $155 Million Broughton Hospital Campus on 275 Acres with 1,200 Employees and CHS Blue Ridge Hospital with 1,400 Employees
• Close Proximity to Pisgah-Nantahala National Forest with 6.8 Million Visitors Annually, 3rd Most Visited National Forest in U.S.
Investment Highlights
POPULATION 1-MILES 3-MILES 5-MILES
2018 Population 3,063 18,819 34,725
2023 Population 3,107 18,912 35,200
HOUSEHOLDS
2018 Households 1,173 7,389 13,353
2023 Households 1,191 7,505 13,697
INCOME2018 Average Household Income $65,052 $60,492 $59,175
EMPLOYEES2018 Number of Employees In Area 4,283 20,702 26,866
34,725Population within
a 5-Mile Radius
$59,175Average Household Income
within a 5-Mile Radius
26,866Number of Employees within a 5-Mile Radius
Founded in 1960, Covelli Enterprises has grown to become the largest franchisee in the Panera system with over 280 Panera locations in North America and Canada. Covelli Enterprises is currently the 4th largest franchisee in the United States and the largest Panera Bread franchisee. Previous owner and operator of 45 McDonald’s franchises, Covelli currently controls, owns and operates 280 Panera locations in 7 states, as well as in Canada. In addition to Panera Bread, Covelli Enterprises is also a franchisee of several Dairy Queen and O’Charley’s Restaurants.
Recognized as having the highest rated restaurant operations and business practices in the industry, Sam Covelli has continually won operational awards for sales, exceptional service, cleanliness, and customer service.
Tenant Overview
OWNERSHIP: TENANT: WEBSITE:
Private
Franchisee
www.panerabread.com
Aspen Dental Management, Inc. (“ADMI”) provides administrative and business support services to Aspen Dental branded dental practices. ADMI licenses the “Aspen Dental” brand name to the independently owned and operated dental practices that use its business support services. ADMI does not own or operate the dental practices, employ or in any way supervise the dentists providing dental care, and control over the care provided is the sole responsibility of the independent practice and the dentists they employ.
700+LOCATIONS
HEADQUARTERED IN
East Syracuse, NY
FOUNDED
1998 TEAM MEMBERS
$500Billion
SALES VOLUME
10,000
OWNERSHIP: TENANT: WEBSITE:
Private
Corporate
www.aspendental.com
MORE THAN
280+LOCATIONS
HEADQUARTERED IN
Warren, Ohio
FOUNDED
1960EMPLOYS OVER
25,000TEAM MEMBERS
REPRESENTATIVE PHOTOREPRESENTATIVE PHOTO REPRESENTATIVE PHOTO
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. © 2019 Marcus & Millichap ACT IDZAA0090217
LEASE SUMMARIES
LANDLORD RESPONSIBILITIES
Landlord shall be responsible for all maintenance, replacement and repair to the roof, parapets, flashing, gutters, downspouts, canopies and awnings, floor slab, support columns, footers, subfloor, outer walls, common area lights and structural portions of the building. Landlord shall also be responsible for all maintenance, replacement and repair of exterior and underground utility installations and electrical conduit and wire not solely serving the premises.
TENANTRESPONSIBILITIES
Tenant shall make and pay for all maintenance, replacement and repair necessary to keep the premises in a good state of repair, including maintenance replacement and repair of the windows, doors and door frames. Tenant shall install the HVAC and maintain a service contract on the unit.
COMMON AREA MAINTENANCE
Tenant shall pay its pro rata share of CAM, including a 5% admin fee. Annual increases in CAM shall not increase more than 5% excluding utilities and snow and ice removal.
TAXES Tenant shall pay its pro rata share of real estate taxes.
INSURANCE Tenant agrees to carry commercial general liability insurance, property damage insurance, and employer’s liability insurance.
Tenant shall reimburse Landlord for its pro rata share of Landlord’s insurance, including general liability insurance and property damage insurance.
ASSIGNMENT & SUBLETTING
Tenant shall not assign or sublet the lease without Landlord’s written consent, and shall not be relieved of any liability or obligations of the lease.
ESTOPPEL Tenant shall have 20 days from receipt of request to provide an executed estoppel.
LANDLORD RESPONSIBILITIES
Landlord shall maintain the roof and exterior building walls and structural components of the premises.
TENANTRESPONSIBILITIES
Tenant shall, at Tenant’s sole cost and expense, keep the premises, including any interior plumbing systems, in good and sanitary condition and repair, including the HVAC. Tenant shall replace all broken glass and maintain and repair all of Tenant’s store front signage.
COMMON AREA MAINTENANCE
Tenant shall pay its pro rata share of CAM, including a 5% admin fee. Annual increases in CAM shall not increase more than 3% excluding snow and ice removal, insurance and utility expenses for common areas.
TAXES Tenant shall pay its pro rata share of real estate taxes.
INSURANCE Tenant shall procure and maintain commercial general liability insurance, property insurance, employer’s liability insurance and all-risk insurance.
Tenant shall reimburse Landlord for its pro rata share of Landlord’s insurance, including general liability insurance, all-risk property and casualty insurance and rent insurance.
ASSIGNMENT & SUBLETTING
Tenant shall not assign or sublet the lease without Landlord’s written consent, and shall not be relieved of any liability or obligations of the lease.
ESTOPPEL Tenant shall have 15 Days from receipt of request to provide an executed estoppel.
Morganton is a city and country seat in Burke County, North Carolina. The largest county in western North Carolina, Burke County is location at the foot of the Blue Ridge Mountains.
The state of North Carolina is a major employer in Morganton. State-operated facilities include Broughton Hospital and the North Carolina School of the Deaf. Others include businesses catering to the many tourists who travel through the area.
Southern Railway services Morganton and Burke County by rail and approximately 30 major truck carriers provide ground/freight transportation.
Charlotte and Asheville are about an hour’s drive away. Charlotte’s Douglas International Airport is approximately 70 miles from Morganton and offers about 500 flights per day. General aviation and charter services, as well as housing for numerous corporate and private aircraft are available at the Foothills Regional Airport approximately eight miles northeast of Morganton. This facility is a joint venture between the City of Morganton, Burke County, the City of Lenoir and Caldwell County.
Morganton, NC
5 5 M I L E SAsheville, NC
7 0 M I L E SDowntown Charlotte
1 . 7 M I L E SDowntown Morganton
T O L O C A L A T T R A C T I O N SPROXIMITY
SUBJECTPROPERTY
CONFIDENTIALITY & DISCLAIMER
The 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.
NON-ENDORSEMENT NOTICE
Marcus & 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.
NET-LEASED DISCLAIMER
Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows:
The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.
As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer.
Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors. Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs.
Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property.
By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.
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