HOBBY LOBBY + PETSMART - 1200 10TH AVE S GREAT FALLS, MT 59405 OFFERING MEMORANDUM - LoopNet
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OFFERING MEMORANDUM HOBBY LOBBY + PETSMART 1200 10TH AVE S GREAT FALLS, MT 59405
CONTAC T:
BROKERS:
TA B L E of
RYAN GOMEZ
Senior Director
Capital Markets | Net Lease Group
CONTENTS
Direct: 760-431-3824
Mobile: 858-822-9811
ryan.gomez@cushwake.com
License: CA 01753933
ROBERT DONNELL
Associate
Capital Markets | Net Lease Group i. Investment Overview
Direct: 619-732-3974
Mobile: 619-818-5852
robert.donnell@cushwake.com ii. Financial Summary
Licence: CA 02082187
i i i . Te n a n t O v e r v i e w
Listed in conjunction with
Montana Broker of Record:
i v. M a r k e t S u m m a r y
Matthew Waatti
RRE-BRO-LIC-30978
i. I nvestment Overview
INVESTMENT HIGHLIGHTS
H OBBY LO BBY + PE T S M A RT • Sector-Leading Tenants with Strong
Corporate Credit
• Hobby Lobby is the largest arts and
PROPERTY ADDRESS crafts retailer in the US
1200 10th Ave S • PetSmart is the largest specialty pet
Great Falls, MT 59405 retailer in the US
• Rent Increases in July 2022
SIZE
Hobby Lobby 48,100 SqFt » $.50/ft for Hobby Lobby
PetSmart 19,099 SqFt
Vacant Box 5,310 SqFt » 10% for PetSmart
Total Bldg 72,509 SqFt
• 6+ Years of remaining initial term with
Land: 4.25 AC (185,130 SqFt) options and increases for both tenants
• Excellent synergy with neighboring
YEAR BUILT retailers
2005 • 3-mile population of 55,000
i. I nvestment Overview
PROPERTY OVERVIEW
• The city of Great Falls is the third largest
city in Montana
• Holiday Village Mall is located along
Interstate 15, 90 miles north of the state
capital (Helena) and 120 miles south of the
Canadian border
• Over 39,071 VPD on 10th Ave S and a
combined 16,218 VPD for the entrances on
9th and 13th street
• Closest Regional Mall is over 125 miles away
• Top 89th percentile for Shopping Center
foot traffic Nationwide with approximately
2.2 million visits in the past 12 months
(Placer.ai)
VIEW PROPERTY VIDEO
ii. FI n an cial S ummary
LEASE DETAILS RENT SCHEDULE
Lease Type
NN+
Lease Guarantor
Hobby Lobby Stores, YEAR MONTHLY RENT ANNUAL RENT
Inc.
1-5 $30,062.50 $360,750.00
Rent Commencement Date
07/01/2017
6-10 ($0.50/ft increase on 7/1/22) $32,066.67 $384,800.00
Lease Expiration Date
06/30/2027 Option 1 ($0.50/ft increase) $34,070.83 $408,850.00
Term Remaining on Lease
Option 2 ($0.50/ft increase) $36,075.00 $432,900.00
±6 years
Options
Two 5-year
Increases
$0.50/SF every 5 years
* Landlord responsible for roof and structure
ii. FI n an cial S ummary
LEASE DETAILS RENT SCHEDULE
Lease Type
NN+
Lease Guarantor
PetSmart, Inc. YEAR MONTHLY RENT ANNUAL RENT
Rent Commencement Date 1-5 $30,240.08 $362,881.00
07/01/2017
Lease Expiration Date 6-10 (10% increase on 7/1/22) $33,264.08 $399,169.00
06/30/2027
Option 1 (10% increase) $36,590.50 $439,086.00
Term Remaining on Lease
±6 years
Option 2 (10% increase) $40,251.17 $483,014.00
Options
Three 5-year Option 3 (10% increase) $44,277.83 $531,334.00
Increases
10% every 5 years
*Landlord responsible for roof and structure
ii. FI n an cial S ummary RENT ROLL TENANT RECOVERY TYPE ANNUAL RENT ANNUAL RENT PSF SQUARE FEET PERCENTAGE LEASE FROM LEASE TO INCREASE DATE INCREASE AMOUNT OPTIONS Hobby Lobby NNN $360,750.00 $7.50 48,100 66.34% 7/1/2017 6/30/2027 7/1/2022 $.50/ft Two 5-year with $.50/ft increases PetSmart NNN $362,881.00 $19.00 19,099 26.34% 7/1/2017 6/30/2027 7/1/2022 10% Three 5-year with 10% increases Master Lease NNN $79,650.00 $15.00 5,310 7.32% COE 1-year Total $803,281.00 72,509
ii.iii.FITen
n anacial
nt Overview
S ummary
FINANCIAL ANALYSIS
Cap rate
7.00%
Price
$11,475,450
Price/ft Land
$62.00
Price/ft Bldg.
$158.00
10t
hA
ve
Pro-Forma NOI* S (39
,07
$803,281.00 1V
PD
*5,310 SF Vacancy built into )
Pro-Forma NOI at $15/ft, adding
$79,650 to NOI
iii. Te na nt O ve r view
HOBBY LOBBY
Hobby Lobby Stores, Inc. is the largest privately owned arts-and-crafts
retailer in the world employing over 43,000 employees and operating more
than 932 stores in forty-seven states. It operates a retail chain offering crafts,
hobbies, picture framing, jewelry making, fashion fabrics, floral, cards and
party, baskets, wearable art, home accents, and holiday supplies. Founded by
David Green in 1972, Hobby Lobby Stores maintains headquarters in Oklahoma
City, Oklahoma. Hobby Lobby ranks 79th on the Forbes list of America’s Largest
Private Companies with $5.3 Billion in Annual Revenue for 2020 and no long-term debt.
PETSMART
PetSmart, Inc was founded in 1986 and is a privately held company headquartered in Phoenix,
AZ. PetSmart has more than 1,650 stores and employs over 55,000 people in the U.S., Canada,
and Puerto Rico. With 2020 Revenue exceeding $9.62 Billion, PetSmart is the largest pet specialty
retailer in North America providing best-in-class products and solutions for pets and pet parents.
PetSmart provides a broad range of competitively priced pet products and food, as well as pet-focused
services including grooming, dog training, PetsHotel (dog and cat boarding facilities, currently in around
200 PetSmart locations), and pet adoptions. Through their in-store adoption program, PetSmart has
facilitated more than 7.4 million pet adoptions which is more than any other brick-and-mortar company.
PetSmart also owns 70% of the popular online pet retailer, Chewy.com.
iv. Mar ket Summary
DEMOGRAPHICS
DEMOGRAPHICS
POPULATION 1 MILE 3 MILE 5 MILE
2020 Population 11,430 54,928 70,171
2025 Population Projection 11,429 54,766 70,408
Median Age 36.7 39.2 37.2
Bachelor's Degree or
17% 23% 24%
Higher
HOUSEHOLDS 1 MILE 3 MILE 5 MILE
2020 Households 5,258 24,002 29,442
2025 Household Projection 5,257 23,936 29,511
Owner Occupied 2,321 14,574 17,866
Renter Occupied 2,937 9,363 11,645
Avg Household Size 2.1 2.2 2.3
Avg Household Vehicles 2 2 2
Total Specified Consumer
$101.9M $556.9M $701M
Spending ($)
5 MILE
HOUSING 1 MILE 3 MILE 5 MILE
Average Home Value Average Household Income
Median Home Value $156,809 $177,306 $181,777 $181,920 $66,333
Median Year Built 1960 1961 1964Visits Trend
iv. Mar ket Summary
Holiday Village / 10th Ave S
TRADE AREA CONSUMER TRAFFIC
The data shown was provided by Placer.ai, a company that tracks consumer data via smartphone apps. Holiday VISIT
300KTRENDS
Village
Trade Area - Home ranks in the top 90th percentile for Shopping Center foot traffic in Montana and in the top 89th percentile
Location
for Shopping Center foot traffic Nationwide with approximately 2.2 million visits in the past 12 months.
Holiday Village / 10th Ave S
Estimated # of Visits
200K
HEAT MAP OF VISITORS IN THE TRADE AREA
100K
0
20 20 20 20 20 20 20 20 02
0 20 21 21
,20 ,20 ,20 , 20 ,20 ,20 ,20 ,20 v ,2 ,20 , 20 ,20
Ma
r
Ap
r
Ma
y Jun Jul Au
g
Sep Oc
t
N o De
c Jan Feb
PERCENTILE RANK
Est. # ofPercentile
Visits | Mar Rank
1, 2020- -Category:
Feb 28, 2021Shopping Centers
Data provided by Placer Labs Inc. (www.placer.ai)
Daily Visits
Holiday Village / 10th Ave S
Holiday Village / 10th Ave S
Unique # of Visits | Showing Home | At least 1 visit | Mar 1, 2020 - Feb 28, 2021
DAILY VISITS
Data provided by Placer Labs Inc. (www.placer.ai)
600K Unique # of Visits | Showing Home | At least 1 visit | Mar 1, 2020 - Feb 28, 2021
Data provided by Placer Labs Inc. (www.placer.ai)
400K
# of Visits
200K
0
Monday Tuesday Wednesday Thursday Friday Saturday Sunday
Showing Category: Shopping Centers | Region: Nationwide | Mar 1, 2020 - Feb 28, 2021
Data provided by Placer Labs Inc. (www.placer.ai)HOBBY LOBBY + PETSMART This Confidential Offering Memorandum (“Memorandum”) is being Information, which may include engineering, environmental or other delivered subject to the terms of the Confidentiality Agreement (the reports, may be provided to qualified parties as the marketing period “Confidentiality Agreement”) signed by you and constitutes part of the proceeds, prospective purchasers should seek advice from their own Confidential Information (as defined in the Confidentiality Agreement). attorneys, accountants, engineers and environmental experts. Neither It is being given to you for the sole purpose of evaluating the possible Cushman & Wakefield nor Managing Member guarantees the accuracy or investment in 1200 10th Ave S., Great Falls, MT 59405 (the “Project”), completeness of the information contained in this Memorandum or any and is not to be used for any other purpose or made available to any other Confidential Information provided by Cushman & Wakefield and other party without the prior written consent of its exclusive broker, Managing Member. Managing Member expressly reserves the right, at its Cushman & Wakefield. This Memorandum was prepared by Cushman & sole discretion, to reject any offer to invest in the Project or to terminate Wakefield based primarily on information supplied by Managing Member. any negotiations with any party at any time with or without written notice. It contains select information about the Project and the real estate Managing Member shall have no legal commitment or obligations to any market but does not contain all the information necessary to evaluate prospective investor unless and until a written sale agreement has been the Project. The financial projections contained herein (or in any other fully executed, delivered and approved by Managing Member and any Confidential Information) are for general reference only. They are based conditions to Managing Member’s obligations thereunder have been on assumptions relating to the overall economy and local competition, satisfied or waived. Managing Member has retained Cushman & Wakefield among other factors. Accordingly, actual results may vary materially as its exclusive broker and will be responsible for any commission due from such projections. Various documents have been summarized to Cushman & Wakefield in connection with a transaction relating to herein to facilitate your review; these summaries are not intended to the Project pursuant to a separate agreement. Cushman & Wakefield be a comprehensive statement of the terms or a legal analysis of such is not authorized to make any representation or agreement on behalf documents. While the information contained in this Memorandum and of Managing Member. Each prospective investor will be responsible for any other Confidential Information is believed to be reliable, neither any claims for commissions by any other broker in connection with an Cushman & Wakefield nor Managing Member guarantees its accuracy or investment in the Project if such claims arise from acts of such prospective completeness. Because of the foregoing and since the investment in the investor or its broker. This Memorandum is the property of Managing Project is being offered on an “As Is, Where Is” basis, a prospective investor Member and all parties approved by Managing Member and may be or other party authorized by the prospective investor to use such material used only by parties approved by Managing Member. No portion of this solely to facilitate the prospective purchaser’s investigation, must make Memorandum may be copied or otherwise reproduced or disclosed to its independent investigations, projections and conclusions regarding anyone except as permitted under the Confidentiality Agreement. the investment in the Project without reliance on this Memorandum or any other Confidential Information. Although additional Confidential R YA N G O M E Z ROBERT DONNELL Senior Director Associate Capital Markets | Net Lease Group Capital Markets | Net Lease Group Direct: 760-431-3824 // Mobile: 858-822-9811 Direct: 619-732-3974 // Mobile: 619-818-5852 ryan.gomez@cushwake.com robert.donnell@cushwake.com License: CA 01753933 License: CA 02082187 ©July 14, 2021 12:37 PM Cushman & Wakefield. All rights reserved. The information contained in this communication is strictly confidential. This information has been obtained from sources believed to be reliable but has not been verified. No warranty or representa- tion, express or implied, is made as to the condition of the property (or properties) referenced herein or as to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by the property owner(s). Any projections, opinions or estimates are subject to uncertainty and do not signify current or future property performance.
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