firestone · 2019. 5. 16. · p. 2 matthews retail group offering memorandum | firestone priing and...

OFFERING MEMORANDUM

FIRESTONE 131 S FRANKLIN ST, CHAMBERSBURG, PA 17201

Representative Photo

OFFERING MEMORANDUM | Firestone

PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS

Matthews Retail Group

CONFIDENTIALITY & DISCLAIMER STATEMENTThis Of fer ing Memorandum contains se lec t in format ion per ta in ing to the bus iness and af fa i rs of Firestone located at 131 S Franklin St, Chambersburg, PA 17201 (“Proper ty”). I t has been prepared by Mat thews Retai l Group . This Of fer ing Memorandum may not be al l - inc lus ive or contain a l l o f the in format ion a prospect ive purchaser may desi re. The in format ion contained in th is Of fer ing Memorandum is conf ident ia l and furn ished sole ly for the purpose of a rev iew by a prospect ive purchaser of the Proper ty. I t i s not to be used for any other purpose or made avai lable to any other person wi thout the wr i t ten consent of Sel le r or Mat thews Retai l Group . The mater ia l i s based in par t upon in format ion suppl ied by the Sel ler and in par t upon f inancia l in format ion obtained f rom sources i t deems re l iable. Owner, nor thei r of f icers, employees, or agents makes any representa t ion or warranty, express or impl ied, as to the accuracy or comple teness of th is Of fer ing Memorandum or any of i t s contents and no legal l iabi l i ty i s assumed or shal l be impl ied wi th respect there to. Prospect ive purchasers should make thei r own projec t ions and form thei r own conclus ions wi thout re l iance upon the mater ia l contained herein and conduct thei r own due di l igence.

By acknowledging your receipt of th is Of fer ing Memorandum for the Proper ty, you agree:

1. The Of fer ing Memorandum and i t s contents are conf ident ia l ;

2. You wi l l ho ld i t and t reat i t in the s t r ic tes t o f conf idence; and

3. You wi l l not , di rec t ly or indi rec t ly, disc lose or permi t anyone e lse to disc lose th is Of fer ing Memorandum or i t s contents in any fashion or manner det r imenta l to the in teres t of the Sel ler.

Owner and Mat thews Retai l Group express ly reser ve the r igh t , a t thei r so le discre t ion, to re jec t any and al l express ions of in teres t or of fers to purchase the Proper ty and to terminate discuss ions wi th any person or ent i ty rev iewing th is Of fer ing Memorandum or making an of fer to purchase the Proper ty un less and unt i l a wr i t ten agreement for the purchase and sale of the Proper ty has been fu l ly executed and del ivered.

I f you wish not to pursue negot ia t ions leading to the acquis i t ion of the Proper ty or in the fu tu re you discont inue such negot ia t ions, then you agree to purge al l mater ia ls re la t ing to th is Proper ty inc luding th is Of fer ing Memorandum.

A prospect ive purchaser ’s so le and exc lus ive r igh ts wi th respect to th is prospect ive t ransact ion, the Proper ty, or in format ion provided herein or in connect ion wi th the sale of the Proper ty shal l be l imi ted to those express ly provided in an executed Purchase Agreement and shal l be subjec t to the terms thereof. In no event shal l a prospect ive purchaser have any other c la ims agains t Sel le r or Mat thews Retai l Group or any of thei r af f i l ia tes or any of thei r respect ive of f icers, Di rec tors, shareholders, owners, employees, or agents for any damages, l iabi l i ty, or causes of act ion re la t ing to th is so l ic i ta t ion process or the market ing or sa le of the Proper ty.

This Of fer ing Memorandum shal l not be deemed to represent the s ta te of af fa i rs of the Proper ty or cons t i tu te an indicat ion that there has been no change in the s ta te of af fa i rs of the Proper ty s ince the date th is Of fer ing Memorandum.

EXCLUSIVELY L ISTED BY:

Table of ContentsPRICING & FINANCIAL ANALYSIS

Investment Overview .................................................... 2Investments Highlights .................................................. 2Executive Summary ..................................................... 3Company Overview .................................................... 4

PROPERTY DESCRIPTIONPhysical Description ..................................................... 7Tenant Map ................................................................ 8Regional Map ............................................................. 9Birds Eye .................................................................. 10

DEMOGRAPHICSCity Overview |Chambersburg, PA ............................ 12Demographics Report ................................................ 13

Braden CrockettAssociate DIRECT +1.310.919.5814 MOBILE +1.714.345.6206 [email protected] License No. 01946071

OFFERING MEMORANDUM | FirestoneMatthews Retail Group


Pricing & Financial Analysis

OFFERING MEMORANDUM | FirestoneP. 2 Matthews Retail Group


• Offered at an attractive 7% cap rate

• Low Price Point of $580,000 for a National Tenant

• Low Annual Rents for a Tire Store - only $40,620 Annually

• Proven Location - Tenant has Operated at this location Since 1996

• Survived Post Merger - Firestone demonstrates commitment to this site by exercising option after their acquisition of Expert Tire to solidify their presence in this market

• Recent Renovations done to exterior by Tenant at Tenant’s Expense

• Fee Simple Interest in Net Leased Tire Store

• Net Leased Investment - Limited Landlord responsibilities

• Very Low Rent/SF - Increased security of long term, consistent rents

• Guaranteed by Bridgestone Retail operations known under the trade name of Firestone Complete Auto Care

• High Volume Store - Consistently fills all 6 bays

• Located in the Center of Town

• High Quality Service - Excellent Consumer Reviews leads to additional long-term viability of the business

Investments Highlights

• Low Rent to Squarefoot Ratio

• Low Price/Squarefoot Ratio

• Recently Rebranded in July of 2014 as a Firestone Complete Auto Care from Expert Tire - may demonstrate increased commitment to the site

Matthews Retail Group P. 3Firestone | OFFERING MEMORANDUM


Executive Summary

FIRESTONE131 S FRANKLIN ST CHAMBERSBURG, PA 17201

List Price ............................................................................$580,000Gross Leasable Area .......................................................... 7,126 SFPrice/SF ................................................................................$81.39CAP Rate - Current .................................................................. 7.00%Lot Size ....................................................... 0.52 Acres (22,500 SF)

Annualized Operating DataMonthly Rent Annual Rent Rent/SF CAP Rate

Current - 4/30/2018 $3,385.00 $40,620.00 $5.72 7.00%

Option 1 - 5/1/2018 $3,725.00 $44,700.00 $6.30 7.70%

Option 2 - 5/1/2023 $4,095.00 $49,140.00 $6.92 8.47%

Tenant Summary

Tenant Trade Name Firestone

Type of Ownership Fee Simple

Lease Guarantor Corporate

Lease Type NN

Roof and Structure Landlord Responsible

Original Lease Term 10 Years

Lease Commencement Date May 1, 1996

Rent Commencement Date May 1, 1996

Lease Expiration Date April 30, 2018

Term Remaining on Lease +/- 3 Years

Increases 10% Every Option

Options Two (2) Five (5) Year



Consumer Testimony 10 out of 11 - 5 Star Reviews

• Source: http://www.firestonecompleteautocare.com/store-detail/22020/131-s-franklin-st-chambersburg-pa-17201-2049/



Lease AbstractTenant Firestone ( Guaranteed by Bridgestone Retail Operations.)Parent Company Bridgestone Corporations of AmericaDate of Lease June 6th, 1996Rent Commencement Date August 1st, 1996

Lease Expiration April 30, 2018Lease Term +/ - 3 Years RemainingRenewal Options Two (2) Five (5) year optionsAnnual Rent Current – April 30th, 2018: $40,620

Option Periods:

May 1st 2018 – April 30th 2023: $44,700May 1st 2023 – April 30th 2028: $49,140.

Real Estate Taxes Tenant Responsible Utilities Tenant Responsible Common Area Expenses Tenant Responsible Insurance (Tenant) Tenant reimburses landlord for InsuranceRepairs & Maintenance (Tenant)

“With respect to any major interior maintenance or repairs, Tenant shall be responsible for the first $7,500 per occurrence for such costs and Landlord shall be responsible for the cost in excess of $7,500.” (Tenant responsible for electrical plumbing, HVAC, interior and exterior painting, storefront windows, etc. See Section 7 of lease.)

Repairs & Maintenance (Landlord)

Landlord responsible for roof and structure maintainence and repair. Tenant may make repairs under $1,500 which Landlord will be responsible for reimbursement.

Estoppel Within 20 days from request



Guarantor Overview

Bridgestone Corporation purchased Firestone in 1988 for $2.6 billion, transforming the companies’ combined operations into the world’s largest tire and rubber company. The operations in the Americas were renamed Bridgestone/Firestone, Inc. (BFS) and became the largest subsidiary of Bridgestone. As part of its integration with Bridgestone’s existing U.S. operations, Bridgestone/Firestone moved its headquarters from Akron to Nashville in 1992.

In an effort to enhance its core business units and to address its customers’ needs and wants, the company today does business in the Americas under a holding company structure in which Bridgestone Americas, Inc. (BSAM) owns several operating units and subsidiaries, which includes building and industrial products, natural rubber, and industrial fibers and textiles businesses, as well as the tire businesses. Bridgestone Americas Tire Operations, LLC is part of a larger business unit also known as Bridgestone Americas Tire Operations (BATO). Reporting into this business unit are the company’s Latin American tire operations, the U.S. and Canadian consumer tire businesses and the U.S. and Canadian commercial tire businesses. These businesses include tire manufacturing and wholesale and original equipment sales operations across a broad line of products, including consumer, commercial truck and bus, agricultural, and off road tires. Product development and research related to these businesses are also conducted by BATO. BATO sells tires for passenger, light truck, truck, bus, off road, motorcycle, agricultural and kart applications through a variety of different outlets, including independent dealers, discount retailers, warehouse clubs and stores owned by Bridgestone Retail Operations, LLC (BSRO). In addition, through Bridgestone Commercial Solutions, retreading customers have access to industry-leading research and development, manufacturing, marketing and sales expertise, providing them with a total tire solution.

Gurantor Firestone

Property Address 131 S Franklin St, Chamberburg, PA 17201

Rentable Square Feet 7,126 SF

Property Type Net Leased Auto Parts

Parent Company Trade Name Bridgestone

Ownership Public

Credit Rating BBB+

Rating Agency Standard and Poor’s

Revenue $29.78 Billion.

Net Income $1.681 Billion

Stock Symbol BRDCY

Board NASDAQ

No. of Locations 2,200

No. of Employees 143,448

Headquartered Tokyo, Japan

Web Site http://www.bridgestone.co.jp

Year Founded 1931

Property Description



Physical Description

THE OFFERINGProperty Name ........................................................................ Firestone

Property Address .........................................................131 S Franklin St

Chambersburg, PA 17201

Assessor’s Parcel Number .....................................05-1B64-125-000000

SITE DESCRIPTIONNumber of Stories ...........................................................................One

Gross Leasable Area (GLA) ...................................................... 7,126 SF

Lot Size ............................................................. 0.52 Acres (22,500 SF)

Type of Ownership ................................................................ Fee Simple

Landscaping ........................................................................Professional

Topography ....................................................................Generally Level

CONSTRUCTIONFoundation .......................................................................Concrete Slab

Exterior ......................................................................................... Brick

Parking Surface .........................................................................Asphalt

Roof ................................................................................................Flat




Tenant Map

= Church = High School



Regional Map



Birds Eye

Demographics



City Overview |Chambersburg, PA Chambersburg is a borough in the South Central region of Pennsylvania, United States. It is 13 miles miles north of Maryland and the Mason-Dixon Line and 52 miles southwest of Harrisburg in the Cumberland Valley. Chambersburg is the county seat of Franklin County. Chambersburg is at the core of the Chambersburg, PA Micropolitan Statistical Area which includes surrounding Franklin County. Additionally, the town also lies approximately midpoint on US Route 30 between Pittsburgh and Philadelphia with the local geography reflecting both flatter areas like Philadelphia and mountainous areas like Pittsburgh. The city’s location on Interstate 81 within 100 miles of both Washington, D.C. and Baltimore, Maryland encourages trucking and distribution businesses.

Franklin County’s largest crop is corn with 579 farms that cover 29,916 acres of land. Franklin also has 344 wheat farms and 299 barley farms which combined cover 14,063 acres. Manufacturing in Chambersburg includes machinery production, metal fabrication, and food processing. The largest sectors by payroll were manufacturing companies such as T B Wood’s Inc., Manitowoc cranes, retail trade, and health. The economy of the area is still largely based on agriculture.

Chambersburg recreation includes hunting, sports events such as baseball games at Henninger Field, and high school football games. The town also hosts a professional football team, the Chambersburg Cardinals that plays in the Gridiron Developmental Football League. The Capitol Theatre was opened as a movie palace on Main Street and is home to the Capitol Theatre Main Stage and Auditorium, Chambersburg Council for the Arts, Caledonia Theatre Company, Chambersburg Ballet Theatre School, and Chambersburg Community Theatre. In 2009, Chambersburg ranked among Newsmax magazine’s list of the “Top 25 Most Uniquely American Cities and Towns,” a piece written by current CBS News travel editor Peter Greenberg. In determining his ranking, Greenberg cited the Capitol Theatre.



Demographics ReportPopulation 1-Mile 3-Mile 5-Mile2020 Projection 11,558 34,067 49,1352015 Estimate 11,569 33,457 48,1382010 Census 11,585 32,751 46,9902000 Census 10,405 28,410 40,562Growth 2015-2020 -0.10% 1.82% 2.07%Growth 2010-2015 -0.14% 2.16% 2.44%Growth 2000-2010 11.34% 15.28% 15.85%

Households2020 Projection 4,433 13,827 19,7792015 Estimate 4,455 13,580 19,3782010 Census 4,496 13,312 18,9352000 Census 4,385 11,829 16,535Growth 2015-2020 -0.49% 1.82% 2.07%Growth 2010-2015 -0.92% 2.02% 2.34%Growth 2000-2010 2.55% 12.53% 14.52%

Income$0 - $15,000 788 1,706 2,076$15,000 - $24,999 614 1,685 2,166$25,000 - $34,999 553 1,572 2,202$35,000 - $49,999 809 2,489 3,386$50,000 - $74,999 777 2,611 3,845$75,000 - $99,999 407 1,396 2,165$100,000 - $124,999 223 928 1,538$125,000 - $149,999 124 595 960$150,000 - $199,999 103 391 638$200,000 - $249,999 37 121 205$250,000 - $499,999 18 76 165$500,000+ 1 10 322015 Est. Average Household Income $51,031 $58,488 $63,399

Matthews Retail Group | 841 Apollo Street, Suite 150 | El Segundo, CA 90245 | www.MatthewsRetailGroup.com

FIRESTONE131 S Franklin St Chambersburg, PA 17201OFFERING MEMORANDUM

Braden CrockettAssociate DIRECT +1.310.919.5814 MOBILE +1.714.345.6206 [email protected] License No. 01946071

firestone · 2019. 5. 16. · p. 2 matthews retail group offering memorandum | firestone priing and...

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