jcpenney ground lease · aerial photo jcpenney ground lease is inormation has een secured rom...

Lakewood, CO

REPRESENTATICE

JCPENNEY GROUND LEASE5651 ARIZONA 95LAKE HAVASU CITY, AZ 86404

Offering Memorandum

AERIAL PHOTO JCPENNEY GROUND LEASE

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. © 2013 Marcus & Millichap ACT ID Z0070620


2

LAKE HAVASU

CITY AIRPORT

LAKE HAVASUSTATEPARK

LAKE HAVASUGOLF CLUB

AR

IZO

NA

CA

LIF

OR

NIA

LAKE HAVASUHIGH SCHOOL

1,880 STUDENTS

95

95

AERIAL PHOTO

3

JCPENNEY GROUND LEASE



Starbucks

MCDONALD’S




4

DISTRIBUTOR40,000 SF

PROPOSED FUTURE BREWERY/

RESTUARNT USE DISTRIBUTOR/RETAIL USE

30,000 SF


5


JCPENNEY GROUND LEASE5651 Arizona 95Lake Havasu City, AZ 86404

FINANCIAL SUMMARY

Price $3,781,000

Down Payment 100% $3,781,000

Cap Rate 8.0%

Building SF 105,422 SF

Net Cash Flow 8.0% $302,500

Year Built 2008

Lot Size 7.1 Acres

THE HUMAN BEAN LEASE SUMMARY

Lease Type Absolute Triple-Net (NNN) Ground Lease

Tenant JCPenney Corporation, Inc.

Lease Commencement Date March 1, 2008

Lease Expiration Date February 28, 2028

Original Lease Term 20 Years

Effective Lease Term Remaining 10 Years

Rental IncreasesFlat for Remainder of Term; 10% Bumps in the

Options Only

Renewal Options 10, 5 Year Options

BASE RENT $302,500

Net Operating Income $302,500

Total Return 8.0% $302,500

EXECUTIVE SUMMARY

LEASE YEARS ANNUAL RENT CAP RATE

Current - 2/28/2028 $302,500.00 8.00%

OPTIONS ANNUAL RENT CAP RATE

Option 1 $332,750.00 8.80%

Option 2 $366,025.00 9.68%

Option 3 $402,627.50 10.65%

Option 4 $442,890.25 11.71%

Option 5 $487,179.28 12.88%

Option 6 $535,897.20 14.17%

Option 7 $589,486.92 15.59%

Option 8 $648,435.62 17.15%

Option 9 $713,279.18 18.86%

Option 10 $784,607.09 20.75%

ANNUALIZED OPERATING DATA




6

TENANT OVERVIEW

JCPenney Company, Inc. (NYSE:JCP), one of the na-tion’s largest apparel and home furnishings retailers, combines an expansive footprint of approximately 860 stores across the United States and Puerto Rico with a powerful e-commerce site, jcp.com, to connect with shoppers how, when and where they prefer to shop.

At every customer touchpoint, customers will dis-cover stylish merchandise at incredible value from an extensive portfolio of private, exclusive and na-tional brands. Powering this shopping experience is the customer service and warrior spirit of over 98,000 associates across the globe, all driving toward the Company’s three strategic priorities of strengthening private brands, becoming a world-class omnichannel retailer and increasing revenue per customer.

Headquarters Plano, TX

Stock Symbol NYSE: JCP

Locations 860

2017 Revenue $12.83 Billion

Website www.jcpenney.com

AERIAL PHOTO

7




Starbucks

LOCATION OVERVIEWINVESTMENT HIGHLIGHTS• Absolute Triple-Net (NNN) Lease with 10 Years Remaining

• Priced Way Below Replacement Value at Only $41/SF

• High-End JCPenney Store, which Includes the Sephora Concept and Salon Inside the Premises

• Amazon Coming Soon to Adjacent Property

• Situated in The Shops at Lake Havasu – Other Major Tenants Include Walmart Supercenter, Dillard’s, PetSmart, and Star Cinemas

• Minutes to Lake Havasu State Park – Over Half a Million Visitors Each Year

• 55,975 Residents in Growing Lake Havasu Trade Area

• Excellent Visibility – Directly Off AZ Highway 95

• Centrally Located Between Las Vegas, NV and Phoenix, AZ

PROPERTY DESCRIPTION

Located in Arizona’s Mohave County, Lake Havasu City is the southernmost community of the Las Vegas-Henderson, NV combined statistical area. The city is known as a base for trails in the nearby desert and water sports on Lake Havasu. London Bridge, relocated from England, links the mainland to marinas and looped path in an area known as the Island. The Lake Havasu Museum of History documents Native Americans and steamboat history, and the Lake Havasu State Park has beaches with mountain views, picnic spots and birdlife.

Known as a popular vacation spot in Arizona, Lake Havasu City is a rare escape with appealing natural beauty and more than 300 days of sunshine every year. With more than 60 miles of navigable waterways and no speed or size restrictions for boats, Lake Havasu offers possibilities for aquatic adventures. With its proximity to Southern California, Las Vegas and Phoenix, many boaters in the area have made Lake Havasu their preferred destination for an Arizona weekend getaway.

In Lake Havasu City, there is plenty of opportunities for top-notch dining, gambling, entertainment and shopping. Visitors and residents alike enjoy the city’s Havasu Landing Resort & Casino, shopping at the Downtown Havasu District and Island Mall, and enjoying the city’s nightlife at various pubs and bars.

Income 3-Miles 5-Miles 10-Miles

2017 Est. Average Household Income $49,573 $53,332 $58,062

2017 Est. Median Household Income $33,456 $39,441 $42,236

2017 Est. Per Capita Income $24,025 $23,566 $25,630

Population 3-Miles 5-Miles 10-Miles

2022 Projection 2,869 13,392 62,125

2017 Estimate 2,646 12,042 55,975

Growth 2017 - 2022 8.42% 11.21% 10.99%

Households 3-Miles 5-Miles 10-Miles

2022 Projections 1,407 5,986 27,627

2017 Estimate 1,282 5,314 24,614

Growth 2017 - 2022 9.79% 12.65% 12.24%

DEMOGRAPHIC REPORT




8

PROPERTY PHOTOS

AERIAL PHOTO

9




Starbucks

LOCAL MAP

Williams-Sonoma

MAP

6 MILESLake HavasuState Park

8 MILESLondon Bridge

199 MILESPhoenix,Arizona

144 MILESLas Vegas,

Nevada

Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows:

By accepting this Marketing Brochure, you agree to treat the information contained herein regarding the lease terms as confidential and proprietary and to only use such information to evaluate a potential purchase of this net leased property.

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 care-ful, 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 finan-cial 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 fa-cilities 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 inter-rupted 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.

Net Leased Disclaimer

The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and it should not be made available to any other person or entity without the written consent of Marcus & Millichap. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property at this time, please return this offering memorandum to Marcus & Millichap.

This offering memorandum has been prepared to provide summary, unverified financial and physical 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, PCBs or asbestos, the compliance with local, 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 offering memorandum 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. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT THE MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

Confidentiality Agreement

exclusively listedExclusively listed by:

OFFICES NATIONWIDEwww.marcusmillichap.com

RYAN SARBINOFFBroker of Record PHOENIX OFFICELicense #: BR675146000(602) 687-6700

jcpenney ground lease · aerial photo jcpenney ground lease is inormation has een secured rom...

Documents