Cahaba Market Hoover, AL | Birmingham MSA - T WO END CAP DRIVE THRU'S 15 YEAR LEASES TO ANCHOR TENANTS - Webflow
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
T WO END CAP DRIVE THRU ’S
15 YE AR LE ASES TO ANCHOR TENANTS
OFFERING MEMORANDUM
Cahaba Market
Hoover, AL | Birmingham MSA
This property is listed in conjunction with Alabama-licensed real estate broker Thomas Newton. www.preservewestcapital.com
TABLE OF CONTENTS
PROPERT Y HIGHLIGHTS 1 SITE PL AN 8
PROPERT Y OVERVIEW 2 AERIAL 9
FINANCIAL ANALYSIS 3 ABOUT THE AREA 11
RENT ROLL 6 DEMOGRAPHICS 13
TENANT PROFILES 7
Disclaimer Preserve West Capital (“Broker”) has been retained on an exclusive basis to market the property described herein
(“Property”). Broker has been authorized by the Seller of the Property (“Seller”) to prepare and distribute the enclosed
Putnam Daily
Partner
information (“Material”) for the purpose of soliciting offers to purchase from interested parties. More detailed financial,
title and tenant lease information may be made available upon request following the mutual execution of a letter of intent or 415.445.5107
contract to purchase between the Seller and a prospective purchaser. You are invited to review this opportunity and make an putnam@preservewc.com
offer to purchase based upon your analysis. If your offer results in the Seller choosing to open negotiations with you, you will be
CA RE License #01750064
asked to provide financial references. The eventual purchaser will be chosen based upon an assessment of price, terms, ability
to close the transaction and such other matters as the Seller deems appropriate.
Vahe Nokhoudian
The Material is intended solely for the purpose of soliciting expressions of interest from qualified investors for the acquisition
of the Property. The Material is not to be copied and/or used for any other purpose or made available to any other person
Associate
without the express written consent of Broker or Seller. The Material does not purport to be all-inclusive or to contain all of the 415.445.5122
information that a prospective buyer may require. The information contained in the Material has been obtained from the Seller vahe@preservewc.com
and other sources and has not been verified by the Seller or its affiliates. The pro forma is delivered only as an accommodation
CA RE License #01963342
and neither the Seller, Broker, nor any of their respective affiliates, agents, representatives, employees, parents, subsidiaries,
members, managers, partners, shareholders, directors, or officers, makes any representation or warranty regarding such
pro forma. Purchaser must make its own investigation of the Property and any existing or available financing, and must Michael Maffia
independently confirm the accuracy of the projections contained in the pro forma. Managing Partner
Seller reserves the right, for any reason, to withdraw the Property from the market. Seller has no obligation, express or implied, 415.445.5144
to accept any offer. Further, Seller has no obligation to sell the Property unless and until the Seller executes and delivers mike@preservewc.com
a signed agreement of purchase and sale on terms acceptable to the Seller, in its sole discretion. By submitting an offer, a
CA RE License #01340853
purchaser will be deemed to have acknowledged the foregoing and agreed to release Seller and Broker from any liability with
respect thereto.
Property walk-throughs are to be conducted by appointment only. Contact Broker for additional information.
www.preservewestcapital.com
PROPERT Y HIGHLIGHTS
• Fully-Leased Dunkin’ and Five Guys Anchored Retail Shops Building • Situated Next to Tattersall Park
- 91% of Rent Roll with 10+ Year Lease Terms & Scheduled - 78-Acre Mixed-Use Development Anchored by Publix
Rental Escalations
• Excellent Access and Visibility along U.S. 280 (57,463 AADT)
- 15 Year Lease Terms for End Cap Food Users - Dunkin’ and
Five Guys - Main Arterial Leading to Birmingham
• Highly Functional Footprint Featuring Drive-Thru for Both - U.S. 280 Corridor Includes Over 5.5 Million SF of Office Space
Dunkin’ and Five Guys and Over 1.2 Million SF of Retail
• Brand New 2021 Construction • Robust Demographics in Surrounding Area
• Robust, Internet-Resistant Mix of Food & Service Tenants - Daytime Population of 653,332 in 15 Mile Radius
- Corporate Five Guys Lease – Relocation Store - Average Household Income of $130,565 in 5 Mile Radius
- Experienced Dunkin’ Franchisee (65+ Locations) • Approximately 12 Miles from Downtown Birmingham
• Prominent Location within Established Retail Node in • Birmingham-Hoover is the Largest MSA in Alabama
Birmingham Suburb - Contains Nearly 25% of the State’s Population
- Nearby Anchor Tenants Include Walmart Supercenter, ALDI,
Trader Joe’s, Target, CVS, & More
PRESERVE WEST CAPITAL | 1
PROPERT Y OVERVIEW
Location Improvements
The property is located at 5413 Highway 280 in Hoover, Alabama. A 13,183 square foot retail building demised into six retail suites with drive thru
component for both Dunkin’ and Five Guys.
Lot Size Dunkin’ | 2,000 square feet
Anatole’s Bike, Skate, & Surf Shop | 1,200 square feet
Approximately 1.53 acres or 66,647 square feet.
Jersey Mike’s | 1,246 square feet
My Eyelab | 2,633 square feet
Parking Paradise Grills | 3,556 square feet
The are approximately 66 parking spaces available on site. Five Guys | 2,548 square feet
PRESERVE WEST CAPITAL | 2
FINANCIAL ANALYSIS PRICING
PRICE
$9,548,000
5.75% CAP Rate
Projected Gross Revenue
YEAR 1 YEAR 10 YEAR 1 YEAR 10
Scheduled Base Rental Revenue $532,525 $596,309
Expense Reimbursement Revenue $104,716 $127,874 Net Operating Income $549,023 $615,002
Total Potential Gross Revenue $637,241 $724,183
Return 5.75% 6.44%
Effective Gross Revenue $637,241 $724,183
Annual Expenses
Common Area Maintenance $36,253 $47,302 Note
The net income is an estimate and does not provide for all potential costs and expenses (i.e.
Insurance $9,887 $12,901
maintenance, repair, etc.) that may be required of the owner. Any reserves set forth herein are
Taxes $19,775 $23,632 merely estimates and not based on any experience, physical inspection, or prior knowledge. All
prospective purchasers are strongly advised to make an independent investigation to determine
Management @ 3.5% $22,303 $25,346 their estimate of costs and expenses prior to entering into an agreement to purchase.
Total Operating Expenses $88,218 $109,181
PRESERVE WEST CAPITAL | 3
FINANCIAL ANALYSIS CASH FLOW PROJECTION
Cahaba Market Cash Flow Projectio
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Yea
Jun-2022 Jun-2023 Jun-2024 Jun-2025 Jun-2026 Jun-2027 Jun-2028 Jun-2029 Jun-2030 Jun-2031 Jun-2
May-2023 May-2024 May-2025 May-2026 May-2027 May-2028 May-2029 May-2030 May-2031 May-2032 May-2
Net Rentable Area - Sq. Ft. 13,183
Base Rental Revenue PSF/month $3.37 $3.37 $3.37 $3.37 $3.45 $3.70 $3.70 $3.70 $3.70 $3.77 $4.0
Total Operating Expenses PSF/year $6.69 $6.83 $6.98 $7.13 $7.31 $7.58 $7.74 $7.91 $8.08 $8.28 $8.6
Absorption & Turnover Vacancy % - - - - - - - - - -
Vacancy Allowance % - - - - - - - - - -
Rental Revenue
Potential Base Rent 532,525 532,525 532,525 533,335 546,148 585,777 585,777 585,777 585,777 596,309 644,35
Absorption & Turnover Vacancy - - - - - - - - - -
Total Rental Revenue 532,525 532,525 532,525 533,335 546,148 585,777 585,777 585,777 585,777 596,309 644,35
Total Expense Recoveries 104,716 106,605 108,547 110,601 113,463 118,198 120,366 122,594 124,884 127,874 133,50
Potential Gross Revenue 637,241 639,130 641,072 643,936 659,611 703,975 706,143 708,371 710,661 724,183 777,85
Vacancy Allowance - - - - - - - - - -
Effective Gross Revenue 637,241 639,130 641,072 643,936 659,611 703,975 706,143 708,371 710,661 724,183 777,85
Operating Expenses
CAM - $2.75 36,253 37,341 38,461 39,615 40,803 42,027 43,288 44,587 45,925 47,302 48,72
Insurance - $0.75 9,887 10,184 10,489 10,804 11,128 11,462 11,806 12,160 12,525 12,901 13,28
Taxes - $1.50 19,775 20,170 20,573 20,985 21,405 21,833 22,269 22,715 23,169 23,632 24,10
Management @ 3.5% 22,303 22,370 22,437 22,538 23,086 24,639 24,715 24,793 24,873 25,346 27,22
Total Operating Expenses 88,218 90,065 91,960 93,942 96,422 99,961 102,078 104,255 106,492 109,181 113,33
NET OPERATING INCOME 549,023 549,065 549,112 549,994 563,189 604,014 604,065 604,116 604,169 615,002 664,51
Leasing & Capital Costs
Tenant Improvements - - - - - - - - - -
Leasing Commissions - - - - - - - - - -
Total Leasing & Capital Costs - - - - - - - - - -
Cash Flow Before Debt Service 549,023 549,065 549,112 549,994 563,189 604,014 604,065 604,116 604,169 615,002 664,51
INTERNAL RATE OF RETURN - 10 Year Hold EXIT SALE CALCULATION - End of Year 10
IRR Price Per SF Cap Year 1 Total Dollars Per SF
Capped Value @ 4.75% $13,989,857 $1,061.20
6.28% $11,558,368 $876.76 4.75% Cost of Sale @ 3.00% (419,696) (31.84)
Net Sale Proceeds $13,570,161 $1,029.37
PRESERVE WEST CAPITAL | 4
1/28/2022 - 3:03 PM
FINANCIAL ANALYSIS GENERAL ASSUMPTIONS
General Assumptions
Analysis Date June 2022
Total Rentable Area 13,183 SF
Total Area for CAM
13,183 SF
Reimbursement Calculations
General Inflation per Annum 3%
General Expense Growth
3%
per Annum
Real Estate Tax Growth
2%
per Annum
Management Fee 3.5%
PRESERVE WEST CAPITAL | 5
RENT ROLL
Monthly Annual Current Rent Lease Rental Rental
Lease End of Term
Suite Tenant Sq. Ft. Rent Rent Annual Term Commence. Expiration Increase Increase Options
Structure Assumption
PSF PSF Rent Date Date Date(s) Amount(s)
4 @ 5 yrs
NNN with tenant responsible for all taxes, in-
Option 1: $106,480 surance, and proportionate share of common
2/1/2027 $88,000
100 Dunkin’ 2,000 $3.33 $40.00 $80,000 15 yrs 2/1/2022 2/28/2037 Option 2: $117,128 area maintenance, including a management Option
2/1/2032 $96,800 fee up to 10% of CAM costs. Increases in
Option 3: $128,841
CAM costs are capped at 5% annually.
Option 4: $141,725
NNN with tenant responsible for all taxes,
2 @ 5 yrs insurance, and proportionate share of com-
5 yrs mon area maintenance, including manage-
101 Anatole's 1,200 $3.08 $37.00 $44,400 12/6/2021 3/31/2027 N/A N/A Option 1: $48,840 ment fee. Tenant is also responsible for an Option
2 mos
Option 2: $53,724 administrative fee equal to 4% of gross rents
and CAM costs.
NNN with tenant responsible for all taxes,
3 @ 5 yrs insurance, and proportionate share of com-
Jersey 10 yrs mon area maintenance, including manage-
Option 1: $58,798
102 1,246 $3.25 $39.00 $48,594 3/12/2022 6/30/2032 4/1/2026 $53,453 ment fee. Tenant is also responsible for an Option
Mike's 2 mos Option 2: $64,678 administrative fee equal to 4% of gross rents
Option 3: $71,146 and CAM costs. Increases in Controllable
CAM costs are capped at 5% annually.
NNN with tenant responsible for all taxes,
insurance, and proportionate share of com-
2 @ 5 yrs mon area maintenance, including manage-
103 My Eyelab 2,633 $3.25 $39.00 $102,687 10 yrs 2/17/2022 3/31/2032 3/1/2027 $112,956 Option 1: $124,251 ment fee. Tenant is also responsible for an Option
Option 2: $136,676 administrative fee equal to 4% of gross rents
and CAM costs. Increases in Controllable
CAM costs are capped at 5% annually.
NNN with tenant responsible for all taxes,
3 @ 5 yrs insurance, and proportionate share of com-
Paradise Option 1: $193,624 mon area maintenance, including manage-
104 3,556 $3.75 $45.00 $160,020 10 yrs 6/1/2022 6/30/2032 6/1/2027 $176,022 ment fee. Tenant is also responsible for an Option
Grills Option 2: $212,987 administrative fee equal to 4% of gross rents
Option 3: $234,285 and CAM costs. Increases in Controllable
CAM costs are capped at 5% annually.
NNN with tenant responsible for all taxes,
insurance, and proportionate share of
common area maintenance. Tenant is also
2 @ 5 yrs responsible for an administrative fee equal to
3/1/2027 $106,506 4% of gross rents and CAM costs. After the
105 Five Guys 2,548 $3.17 $38.00 $96,824 15 yrs 2/5/2022 3/31/2037 Option 1: $128,878 first full lease year, tenant's share of operat- Option
3/1/2032 $117,157
Option 2: $141,771 ing expenses (exclusive of snow and ice
removal, utilities, insurance and taxes) shall
not increase by more than 5% annually on a
non-cumulative basis.
Leased 13,183 100%
Vacant 0 0%
TOTAL 13,183 100%
PRESERVE WEST CAPITAL | 6TENANT PROFILES
Dunkin’ Jersey Mike’s
Dunkin’ serves doughnuts, coffee, baked Jersey Mike’s Subs is a fast casual submarine-
goods, and hot and iced beverages at more style sandwich chain headquartered in
Lessee: Bluemont Group, LLC Lessee: K&A Subs Hoover
than 12,871 locations worldwide. Dunkin’ is Manasquan, New Jersey. The company has more
280, LLC
No. of Locations: 12,871+ a leading quick-service restaurant concept than 2,000 locations nationwide, with more
for hot and iced coffee, donuts, bagels, and Guarantor: KRG Holdings, LLC than 130 additional stores in development and 5
Website: dunkin.com breakfast sandwiches, serving approximately locations outside of the U.S.. The company was
1.7 billion servings of coffee alone each year. No. of Locations: 2,000+ named the fastest-growing sandwich chain in the
The brand’s system-wide sales have grown Website: jerseymikes.com 2017 Nation Restaurant News’ Top 100, and has
approximately 5.4% annually and generate expanded significantly throughout the country,
system-wide sales exceeding $629 million. with nearly 240 locations in California, more than
100% of Dunkin’ units are franchised. Inspire 135 locations in Florida, 121 locations in North
Brands acquired Dunkin’ and Baskin Robbins Carolina, and 94 locations in Texas, with locations
in 2020 for $11.3 billion. in 48 states.
Bluemont Group, LLC, the lease entity, is a K&A Subs Hoover 280, LLC is a franchisee of
franchisee of Dunkin’ operating more than Jersey Mike’s. The guarantor, KRG Holdings LLC,
65 stores in Tennessee, Georgia, Alabama, is the main operating entity with more than 36
Kansas, South Carolina and North Carolina. locations in Alabama, Georgia and Florida. Its goal
The franchisee was named the “Dunkin’ is to reach 50 units by 2022.
Developer of the Year” in 2018.
Paradise Grills
Five Guys Paradise Grills sells custom grills and outdoor
Five Guys sells hamburgers, hot dogs, and kitchen equipment from more than 40
Lessee: Paradise Grills
French fries at more than 1,700 franchised and showrooms across the southeastern United
Lessee: Five Guys Direct, Inc.
corporate locations throughout the U.S.. States and Texas. The company is a national
Properties, LLC
No. of Locations: 40+ manufacturer of luxury outdoor kitchen
This is a corporate location. Five Guys
Guarantor: Five Guys SPV island bars, professional grills, stainless steel
relocated from an existing store south of the Website: paradisegrillsdirect.com
Guarantor, LLC appliances, fire features, patio furniture, and
subject property.
commercial-grade tiki huts and pergolas. The
No. of Locations: 1,700+ company’s products offer rapid assembly and
Website: fiveguys.com disassembly, a quick leveling system, and plug-
and-play electrical system for easy setup.
My Eyelab
Anatole’s Bike, Skate, & Surf Shop
My Eyelab offers glasses, contacts, and eye
exams and innovative telehealth eye exam Anatole’s Bike, Skate, & Surf Shop sells bicycles,
Lessee: Bal Optical, LLC skateboards, and surfing merchandise and
services at more than 50 locations nationwide.
Lessee: Anatole’s LLC
Guarantor: ATL Optical LLC, Mel The company is a subsidiary of Now Optics, apparel.
Optical LLC, and which also operates Stanton Optical; between Guarantor: Tami Manofsky &
Envision Optics LLC the two brands, Now Optics operates more Daniel Manofsky
than 200 locations nationwide. In 2020, the
No. of Locations: 50+ brand was ranked #343 in Entrepreneur
Website: myeyelab.com Magazine’s Franchise 500.
PRESERVE WEST CAPITAL | 7SITE PLAN
DRIVE
THRU
DRIVE
THRU
SIGNAERIAL WEST VIEW
Meadow Brook Brook Highland
Corporate Park Plaza
)
A DT
3 A
,46
(57AERIAL NORTH VIEW
Rd
Valley
Cahaba
Tattersall Park
78-Acre Mixed-Use Development
(5
7,
46
3
A
A
DT
)
Dr
Hugh DanielABOUT THE AREA
General Overview
Hoover, Alabama (population 84,920) is an established
suburb of Birmingham. The city benefits from excellent
access to the greater Birmingham area at the junction
of US-31, I-459, and I-65 approximately 10 miles from
downtown Birmingham. The city is a principal city of
the Birmingham-Hoover Metropolitan Statistical Area,
with a population of 1,149,807, the tenth-largest MSA in
the southeastern U.S. and the 49th largest nationwide.
The greater Birmingham area constitutes the largest
population center in the state of Alabama, comprising
approximately 25% of the state’s population.
The greater Birmingham economy is among the most
diversified in the state, with industries ranging from
banking, manufacturing, state & federal government,
professional services, healthcare, technology, and more.
SITE The region is home to The Birmingham are has a regional
GDP of approximately $64 billion and is highly ranked
with regards to its business climate and labor costs. The
region benefits from excellent access to major markets,
with five interstates providing access to approximately
80% of the U.S. population within a two-day drive.
The region is home to more than 60 biotech startups
and is ranked the number one metropolitan region
for health care jobs, with the University of Alabama –
Birmingham serving as a research hub for the region.
The city additionally serves as the Southeast’s third
largest banking center, with more than 2,000 finance
and insurance firms employing more than 39,000 in
the region. Major companies in the Birmingham area
include Regions Bank, BBVA Compass Bank, Books-A-
Million, AT&T, Blue Cross/Blue Shield, EBSCO Industries,
Alabama Power, Hibbett Sports, Inc., Drummond
Company, Wells Fargo, Vulcan Materials Company,
Torchmark, Sloss Industries, McWane, Inc., Energen,
HealthSouth, and more.ABOUT THE AREA
Site Information
The subject property is prominently located with excellent
access and visibility along U.S. 280 (57,463 AADT)
adjacent to its junction with Highway 119. The site benefits
from robust demographics with a total daytime population
of 77,004 and average household income of $130,201
within a 5 mile radius. More than 65% of the population
within 5 miles of the site has earned a bachelor’s degree or
higher, more than double the national average.
The property is strategically situated within a premier
retail node in close proximity to notable retail tenants,
employers, and schools. The property sits directly
adjacent to the newly opened Publix shopping center,
SITE
which is part of the new 78-acre mixed-use development
called Tattersall Park. The 78-acre development will
feature retail, restaurants, medical facilities, and
residential. Major retail centers nearby include The Village
at Lee Branch, anchored by Publix, Dick’s Sporting Goods,
Hobby Lobby, and AMC Theaters; Brook Highland Plaza,
featuring Lowe’s, Dollar Tree, Petco, Michael’s, Best Buy,
and HomeGoods; Inverness Plaza, anchored by CVS and
Planet Fitness; Inverness Corners, anchored by Kohl’s;
Inverness Village, featuring Walgreens & The Fresh
Market; River Ridge Shopping Center, anchored by Target,
Nordstrom Rack, & Staples; and Shoppes of Collenade,
anchored by Cracker Barrel. Other major retail tenants in
the surrounding area include Walmart Supercenter, ALDI,
CVS, Trader Joe’s, and more.DEMOGRAPHICS
5413 Hwy 280 | Birmingham, AL 35242
Top Employers # of
in Hoover Employees
Regions Bank 3,760
2021 TOTAL POPULATION AVERAGE HOME VALUE AVG. HOUSEHOLD INCOME Blue Cross & Blue Shield
3,303
71,106 $437,478 $130,201 of Alabama
Hoover Board of Education 1,900
Bellsouth Telecommunications 1,170
Population Summary 1 Mile 1 3 Miles 5 Miles
2010 Total Population 3,462 33,665 61,715
Walmart/Sam’s Club 871
2021 Total Population 3,770 38,707 71,106
City of Hoover 772
2026 Total Population 3,941 41,228 75,866
2021-2025 Annual Rate 0.89% 1.27% 1.30% Publix 724
Average Household Income
Tom McLeod Software 441
2021 $119,072 $128,711 $130,201
2026 $130,486 $140,678 $143,313 Costco 251
Average Home Value
Ross Bridge Renaissance 160
2021 $411,482 $437,478 $429,663
2026 $452,728 $484,539 $487,874
PRESERVE WEST CAPITAL | 13Putnam Daily Vahe Nokhoudian Michael Maffia Partner Associate Managing Partner 415.445.5107 415.445.5122 415.373.4060 putnam@preservewc.com vahe@preservewc.com mike@preservewc.com CA RE License #01750064 CA RE License #01963342 CA RE License #01340853
You can also read
