AMERICAN TIRE DISTRIBUTORS - WAREHOUSE/DISTRIBUTION | HARRISONBURG, VA - TotalCommercial.com
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
OFFERING MEMORANDUM NEW YORK | CHICAGO | SAN FRANCISCO | TAMPA | ATLANTA
TRADE NET LEASE WITH CONFIDENCE
AMERICAN TIRE DISTRIBUTORS
WAREHOUSE/DISTRIBUTION | HARRISONBURG, VA
DISCLOSURE
All materials and information received or derived from B Plus E financial data or assumptions. B Plus E NY LLC does not serve
NY LLC, its directors, officers, agents, advisors, affiliates and/or as a financial advisor to any party regarding any proposed
any third party sources are provided without representation or transaction. All data and assumptions regarding financial
warranty as to completeness , veracity, or accuracy, condition performance, including that used for financial modeling
of the property, compliance or lack of compliance with purposes, may differ from actual data or performance. Any
applicable governmental requirements, developability or estimates of market rents and/or projected rents that may be
suitability, financial performance of the property, projected provided to a party do not necessarily mean that rents can be
financial performance of the property for any party’s intended established at or increased to that level. Parties must evaluate
use or any and all other matters. any applicable contractual and governmental limitations as
well as market conditions, vacancy factors and other issues in
Neither B Plus E NY LLC, its directors, officers, agents, advisors, order to determine rents from or for the property.
or affiliates makes any representation or warranty, express or
implied, as to accuracy or completeness of the any materials Legal questions should be discussed by the party with an
or information provided, derived, or received. Materials and attorney. Tax questions should be discussed by the party
information from any source, whether written or verbal, that with a certified public accountant or tax attorney. Title
may be furnished for review are not a substitute for a party’s questions should be discussed by the party with a title
active conduct of its own due diligence to determine these officer or attorney. Questions regarding the condition of the
and other matters of significance to such party B Plus E NY property and whether the property complies with applicable
LLC will not investigate or verify any such matters or conduct governmental requirements should be discussed by the party
due diligence for a party unless otherwise agreed in writing. with appropriate engineers, architects, contractors, other
consultants and governmental agencies. All properties and
EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT services are marketed by B Plus E NY LLC in compliance with
INVESTIGATION AND DUE DILIGENCE. all applicable fair housing and equal opportunity laws.
Any party contemplating or under contract or in escrow for a
transaction is urged to verify all information and to conduct
their own inspections and investigations including through
appropriate third party independent professionals selected
by such party. All financial data should be verified by the party
including by obtaining and reading applicable documents and
reports and consulting appropriate independent professionals.
B Plus E NY LLC makes no warranties and/or representations
regarding the veracity, completeness, or relevance of any
2 AMERICAN TIRE DISTRIBUTORS | HARRISONBURG, VA BENETLEASE.COM
TABLE OF CONTENTS
EXECUTIVE SUMMARY ...................................... 04
INVESTMENT HIGHLIGHTS .............................. 05
LEASE ANALYSIS ............................................... 06
BUILDING SPECS ............................................. 07
TENANT OVERVIEW .......................................... 08
LOCATION OVERVIEW ...................................... 10
SURROUNDING TENANT MAP .......................... 11
AREA MAP
......................................................... 12
DEMOGRAPHICS .............................................. 13
OUR STORY ...................................................... 14
Tim Hain
Director
312.366.3584
thain@benetlease.com
Camille Renshaw
CEO & Co-Founder
646.701.4536
crenshaw@benetlease.com
Kristen Zimmerman
VA License #: 0226031398
3 AMERICAN TIRE DISTRIBUTORS | HARRISONBURG, VA BENETLEASE.COM
EXECUTIVE SUMMARY OFFERING PRICE $6,788,000* C A P R AT E 7.00% A MER ICA N T IRE DI STR IB UTORS ADDRESS 880 Acorn Drive, Harrisonburg, VA ASKING PRICE $6,788,000* ASKING CAP RATE 7.00% RENT INCREASES 2% Annually NOI $467,610* LEASE STRUCTURE NN REMAINING LEASE TERM +/- 11 Years BUILDING SIZE +/- 130,185 SF PPSF +/- $52.14 PSF LAND AC +/- 12.45 AC PROPERTY MIX 97% Warehouse | 3% Office PROPERTY TYPE Warehouse/Distribution YEAR BUILT | RENOVATED 1995 | 2017 *NOI based on escalation 9/1/2020; NOI not inclusive of Deferred Rent Payback. Prices include additional $108,000 for the present value of Deferred Rent Payback. 4 AMERICAN TIRE DISTRIBUTORS | HARRISONBURG, VA BENETLEASE.COM
INVESTMENT HIGHLIGHTS HIGHLIGHTS BELOW MARKET RENT The current rent for ATD is +/- $3.59 PSF, which is well below market rent for similar properties along the I-81 corridor. BELOW REPLACEMENT COST The subject property is currently priced at +/- $52.14 PSF, which is well below the estimated replacement cost of $70 PSF. POPULAR DISTRIBUTION LOCATION Harrisonburg, VA benefits from its dynamic position along the Interstate 81 corridor. The interstate runs North-South from Canada to Tennessee. This dynamic location provides 1-day access to 2/3 of the U.S. population. MISSION CRITICAL ASSET This ATD facility is the only location within a 100-mile radius. This location has a daily inventory turnover of +/- 4,000 tires. 2% ANNUAL RENT INCREASES This asset features 2% annual rent increases, providing a natural hedge against inflation and increasing return over the life of the investment. RECENTLY EXPANDED FACILITY In 2017, ATD completed a 40,000 SF expansion of the existing building. The project also included adding a brand new 7,000 SF covered pad for fenced outside storage. EXPANSION POTENTIAL/VALUE-ADD OPPORTUNITY The subject property currently sits on a +/- 12.45-acre lot. Roughly 5.9 acres remain undeveloped, which provides plenty of space for potential expansion. LONG OCCUPANCY BY LARGEST U.S. TIRE DISTRIBUTOR The building was developed in 1995 for Itco Tire, which ATD purchased in 1998. ATD has been in continuous occupancy since the purchase. HIGHLY FUNCTIONAL DESIGN IDEAL FOR DISTRIBUTION The subject property is a front-loading facility with 5 interior dock doors and 4 exterior dock doors. There is also a drive-in door on the south side of the building creating easy access to the warehouse from the outdoor storage shed. 5 AMERICAN TIRE DISTRIBUTORS | HARRISONBURG, VA BENETLEASE.COM
LEASE ANALYSIS
A MERICAN TIR E DISTR IB UTORS
NOI $467,610*
RPSF +/- $3.59
LEASE EXPIRATION August 31, 2026
REMAINING LEASE TERM +/- 11 Years
RENT INCREASE 2% Annually
RENEWAL OPTIONS 2; 5-Year
LEASE TYPE NN
LANDLORD RESPONSIBILITIES Roof & Structure
*NOI not inclusive of deferred rent monthly installments taking place September 2020 through August 2026
totaling $25,469 annually. NOI of $467,610 will commence 9/1/2020.
RENT SCH ED UL E
YEAR RENT RPSF INCREASE
9/1/2020 - 8/31/2021 $467,610.69 $3.59 2%
9/1/2021 - 8/31/2022 $476,962.91 $3.66 2%
9/1/2022 - 8/31/2023 $486,502.17 $3.74 2%
9/1/2023 - 8/31/2024 $496,232.21 $3.81 2%
9/1/2024 - 8/31/2025 $506,156.85 $3.89 2%
9/1/2025 - 8/31/2026 $516,279.00 $3.97 2%
9/1/2026 - 8/31/2027 $526,605.00 $4.05 2%
9/1/2027 - 8/31/2028 $537,137.00 $4.13 2%
9/1/2028 - 8/31/2029 $547,879.00 $4.21 2%
9/1/2029 - 8/31/2030 $558,837.00 $4.29 2%
9/1/2030 - 8/31/2031 $516,279.99 $4.38 2%
6 AMERICAN TIRE DISTRIBUTORS | HARRISONBURG, VA BENETLEASE.COM
BUILDING SPECS
AT D BU I L D I NG S P E C S
PROPERTY TYPE Warehouse/Distribution
ROOF Metal Deck w/ Ballasted Membrane
ROOF AGE 10 Years 1 DRIVE-IN DOOR
30ft x 50ft
7,000 SF SHED
COLUMN SPACING
ZONING M-1 40,000 SF
ORIGINAL BUILDING
EXPANSION
LOADING 9 Dock High Doors, 1 Drive-In
CEILING CLEAR HEIGHT 22ft - 24ft
5 INTERIOR 4 EXTERIOR
FLOOR SLAB 5” Reinforced Concrete DOCK DOORS DOCK DOORS
OUTSIDE STORAGE Paved, Fenced 7,000 SF Shed
BUILDING DEPTH 245ft
BUILDING MIX 97% Warehouse | 3% Office
LIGHTING HVAC
T5 Motion Sensors Installed 2017
SPRINKLERS PROPERTY MIX
Wet-Pipe Automatic 97% Warehouse
Sprinkler System 3% Office
7 AMERICAN TIRE DISTRIBUTORS | HARRISONBURG, VA BENETLEASE.COM
TENANT OVERVIEW
AMERICAN TIRE DISTRIBUTORS first opened its doors in 1935. Today
AT D PRODU CT SEL ECTION
American Tire Distributors (ATD) is #77 on Forbes list of America’s Largest
Private Companies. ATD has a network of 146 distribution centers and TI R ES
mixing warehouses along with a fleet of 1,500 delivery trucks. This
network allows them to keep a balanced inventory across regions,
ensuring that the products its customers need are always in stock. ATD
also relies on the latest data and technology to keep their supply chain
running smoothly and ensure they deliver to their customers. ATD has
long-held relationships with all of the top tire manufacturers, allowing
them to deliver superior volume savings while maintaining unrivaled
product selection. ATD has exclusive dealer programs in which it partners W H EELS
with independent dealers. The exclusive deal program provides dealers
superior volume savings, business/marketing support, and unrivaled
product selection.
OWNERSHIP Private
HEADQUARTERS Huntersville, NC
FOUNDED 1935 SUPPL I ES
CREDIT RATING B3 (S&P)
FORBES RANK #77 America’s Largest Private Companies
REVENUE +/- $5 Billion
DISTRIBUTION CENTERS +/- 146
EMPLOYEES +/- 5,000
8 AMERICAN TIRE DISTRIBUTORS | HARRISONBURG, VA BENETLEASE.COM
TENANT OVERVIEW | CONTINUED
146 DISTRIBUTION CENTERS | 1,500 DRIVERS | 9,000 INSTALLERS
AMERICAN TIRE DISTRIBUTORS American Tire Distributors’ vast network of distribution centers allows them to keep a balanced
inventory across regions. Each day their private fleet of 1,500 drivers hand-deliver tires, wheels, and
ATD leverages digital tools such as ATD Online, ATD Connect, supplies to more than 18,000 customers across the U.S. and Canada. Additionally, ATD leverages a
and ATD Mobile that allows dealers to order tires, wheels, or number of technologies to keep its supply chain running smoothly.
supplies; check inventory; track delivery; and visualize wheels
on a vehicle. Click To View Site. MEDIA
TECHNOLOGY PARTNERS
CLICK HERE TO READ FULL ARTICLE CLICK HERE TO READ FULL ARTICLE
SUCCESSFULLY COMPLETES BLUE DIAMOND AWARD WINNER
RECAPITALIZATION PROCESS
9 AMERICAN TIRE DISTRIBUTORS | HARRISONBURG, VA BENETLEASE.COM
LOCATION OVERVIEW
HARRISONBURG MSA, VIRGINIA is the largest city on the I-81 corridor
in Virginia and is the county seat of Rockingham County. Harrisonburg
is an attractive city due to its affordable labor rates, highly skilled and
professional workforce, and James Madison University supplying talent
for all fields. Industry leaders are investing hundreds of millions in this
thriving market because of these key factors. Merck, an industry-leading
healthcare company, recently announced the $168 million investment
in their plant located just outside of Harrisonburg. This expansion will
bring 100 new jobs to the area. Harrisonburg is also within a one-day
drive of Boston, Atlanta, Nashville, Indianapolis, and Detroit. Due to this,
JAMES MADISON FOOTBALL STADIUM
manufacturing and distribution has been a mainstay of Harrisonburg
and the Shenandoah Valley economy for many years. Many companies
have their distribution/manufacturing and food processing facilities in
the Harrisonburg MSA such as Walmart, Marshalls, MillerCoors, Cargill,
Perdue, Danone North America, Sysco, American Tire Distribution,
Bridgewater Foods, and many more.
• UNIVERSITIES: James Madison University +/- 21,225 Students
• MAJOR MSAs: One-day drive to 5 major MSA’s
• HARRISONBURG, VA: Largest city on I-81 Corridor in Virginia
HARRISONBURG, VA
10 AMERICAN TIRE DISTRIBUTORS | HARRISONBURG, VA BENETLEASE.COMSURROUNDING TENANTS MAP
N
S
VIRGINIA AVE
SHENANDOAH
VALLEY
EASTERN MENNONITE UNIVERSITY ACO
R ND
RIV
E
VALLEY IMPORT SERVICES LLC
11 AMERICAN TIRE DISTRIBUTORS | HARRISONBURG, VA BENETLEASE.COMAREA MAP
SHENANDOAH VALLEY INDUSTRIAL MARKET HARRISONBURG
81
CROSSING
N
• Industrial Market Rent +/- $4.25 PSF
• Vacancy Rate +/- 5.5% 11
NEW YORK
• Planned Industrial Development +/- 350 MILES
33 33 Million SF
S
• Rail Access to Port of Baltimore and 340
Port of Virginia
VALLEY MALL | +/- 59 STORES PHILADELPHIA
EASTERN MENNONITE UNIVERSITY 268 MILES
81
NORFOLK SOUTHERN RAIL SYSTEM
• 19,000 Mile Rail Network
• Major transporter of industrial WASHINGTON D.C.
products 11
132 MILES
81
MANUFACTURING PITTSBURGH
81 222 MILES
95
33 95
340 NEW YORK
11
PITTSBURGH
JAMES MADISON UNIVERSITY +/- 292,901 SF
95
+/- 23,000 STUDENTS 33
81
PHILADELPHIA
81
95
BALTIMORE
FULFILLMENT CENTER
81
WASHINGTON D.C.
340
95
+/- 263,332 SF
11 +/- 1,200,000 SF
+/- 200,000 SF
RICHMOND
81 +/- 357,673 SF
81
12 AMERICAN TIRE DISTRIBUTORS | HARRISONBURG, VA BENETLEASE.COMDEMOGRAPHICS
P OPULAT IO N
2 MILES 5 MILES 10 MILES
2019 TOTAL POPULATION 16,391 65,098 103,658
POP GROWTH 2019-2024 2.22% 3.43% 4.19%
AVERAGE AGE 37.10 33.60 36.10
HO US EHOL DS
10 MILES
2 MILES 5 MILES 10 MILES
2019 TOTAL HH 6,526 21,967 36,478
MEDIAN HH INCOME $48,378 $46,563 $54,680 5 MILES
AVG HOUSEHOLD SIZE 2.40 2.60 2.60
2019 AVG HH VEHICLES 2.00 2.00 2.00
2 M IL E S
HO US IN G
2 MILES 5 MILES 10 MILES
MEDIAN HOME VALUE $178,268 $218,723 $240,730
MEDIAN YEAR BUILT 1978 1985 1987
13 AMERICAN TIRE DISTRIBUTORS | HARRISONBURG, VA BENETLEASE.COMTHIS IS OUR STORY
B+E is a modern investment brokerage firm, specializing
in net lease real estate and 1031 exchanges. We help
clients buy and sell single tenant real estate. Founded
by deeply experienced brokers, B+E redefines trading
through an intuitive end-to-end transaction platform
comprising of user-friendly dashboards and an AI-driven
exchange — all leveraging the largest data set in the net
lease industry.
Complementing senior talent with exceptional
technology, B+E’s proprietary process affords greater
speed, unrivaled transaction efficiencies, and stronger
asset value. With offices in New York, Chicago, Atlanta,
Tampa, and San Francisco, our brokers trade property
for our clients across the US. B+E allows virtually anyone
to confidently trade net lease real estate.
14 AMERICAN TIRE DISTRIBUTORS | HARRISONBURG, VA BENETLEASE.COMTRADE NET LEASE WITH CONFIDENCE
New York Chicago San Francisco Tampa Atlanta
261 Madison Ave., 9th Floor 980 North Michigan Ave. 303 Sacramento St., 4th Floor 2303 North Florida Ave. 1175 Peachtree St. NE
New York, NY 10016 Chicago, IL 60611 San Francisco, CA 94111 Tampa, FL 33602 Atlanta, GA 30361
646.770.0659 | info@benetlease.comYou can also read
