Hobby Lobby Madison, MS - SITE RENDERING
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SITE RENDERING
OFFERING MEMORANDUM
Hobby Lobby
Madison, MS
This property is listed in conjunction with Mississippi-licensed real estate broker Beau Box. www.preservewestcapital.com
TABLE OF CONTENTS
PROPERT Y HIGHLIGHTS 1 SITE PL AN 8
PROPERT Y INFORMATION 2 AERIALS 9
RENT ROLL 5 ABOUT THE AREA 11
TENANT INFORMATION 6 DEMOGRAPHICS 12
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 information
Michael Maffia
Managing Partner
(“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 contract to purchase 415.373.4060
between the Seller and a prospective purchaser. You are invited to review this opportunity and make an offer to purchase mike@preservewc.com
based upon your analysis. If your offer results in the Seller choosing to open negotiations with you, you will be asked to provide
CA RE License #01340853
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.
The Material is intended solely for the purpose of soliciting expressions of interest from qualified investors for the acquisition Putnam Daily
of the Property. The Material is not to be copied and/or used for any other purpose or made available to any other person
Partner - Brokerage Division
without the express written consent of Broker or Seller. The Material does not purport to be all-inclusive or to contain all of the
information that a prospective buyer may require. The information contained in the Material has been obtained from the Seller 415.445.5107
and other sources and has not been verified by the Seller or its affiliates. The pro forma is delivered only as an accommodation putnam@preservewc.com
and neither the Seller, Broker, nor any of their respective affiliates, agents, representatives, employees, parents, subsidiaries, CA RE License #01750064
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
independently confirm the accuracy of the projections contained in the pro forma. LOCAL MARKET EXPERT:
Seller reserves the right, for any reason, to withdraw the Property from the market. Seller has no obligation, express or implied,
John Michael Holtmann
to accept any offer. Further, Seller has no obligation to sell the Property unless and until the Seller executes and delivers
a signed agreement of purchase and sale on terms acceptable to the Seller, in its sole discretion. By submitting an offer, a Duckworth Realty
purchaser will be deemed to have acknowledged the foregoing and agreed to release Seller and Broker from any liability with *Request introduction by way of Putnam Daily
respect thereto.
Property walk-throughs are to be conducted by appointment only. Contact Broker for additional information.
www.preservewestcapital.com
PROPERT Y HIGHLIGHTS
• Brand New Long-Term Lease to Hobby Lobby • Madison is Mississippi’s Most Affluent Community
-- Scheduled Rental Escalations -- Average Household Income More than 3 Times Median
Income Statewide - Highest in State
-- Sustainable Rent Per Square Foot - $9.92/sf
-- Median Home Values Twice that of Mississippi as a Whole
-- High Sales Per Unit Operator
-- Top Ranked in Jobs, Family-Friendliness, School Quality,
• Brand New 2018 Construction in Growing Shopping Center
Housing, and More
Development
-- Named #1 Place to Live in Mississippi
• Excellent Access & Visibility Near Signalized Hard Corner (18,000
AADT) • Zero Vacancy in Box Retail in Madison
-- Less than Half a Mile from I-55/Highway 143 Junction – • Strong Demographics in Rapidly Growing Community
Combined AADT of 98,000
-- Anticipated Growth Rate of 10.5% by 2020
-- Neighbors $2 Million Crawford Boulevard Expansion Project
-- Average Household Income of $115,440 within 3 Miles of Site
• Neighbors Multiple High-Performing Shopping Centers
• Approximately 15 Miles from Downtown Jackson – Mississippi
-- Anchor Tenants Include Walmart Supercenter, Lowe’s Home State Capital
Improvement, Sam’s Club, Best Buy, and more
• Pride-of-Ownership Asset with Premium Architectural Details
PRESERVE WEST CAPITAL | 1
PROPERT Y INFORMATION HOBBY LOBBY
PRICE | HOBBY LOBBY
$9,093,000
6.00% Return
Lease Annual Rent
Leased to Hobby Lobby Stores, Inc. for fifteen years from an anticipated
rent commencement date of July 30, 2018 through July 31, 2033 at an initial Years Annual Rent Return Rent PSF
annual rent of $545,600. There are four (4) five-year options to renew the
lease. Rent increases by $0.50 per square foot (approximately $27,500) in
1-5 $545,600 6.00% $9.92
years 6 and 11 of the lease and at the start of each option period. The lease is
net with tenant responsible for taxes, insurance, and maintenance, excluding
roof, structure, and capital improvements. Tenant is responsible for all 6-10 $573,100 6.30% $10.42
common area maintenance within its own parcel.
11-15 $600,600 6.61% $10.92
Sustainable and replaceable rent per square foot at $9.92/square foot.
16-20 (Option 1) $628,100 6.91% $11.42
Location
The property is located at the southeast corner of Crawford Boulevard and 21-25 (Option 2) $655,600 7.21% $11.92
Main Street/Highway 463 in Madison, Mississippi.
26-30 (Option 3) $683,100 7.51% $12.42
Lot Size | Hobby Lobby
Approximately 5.32 acres or 231,739 square feet. 31-35 (Option 4) $710,600 7.81% $12.92
Improvements
Construction is expected to be completed in spring 2018 of a 55,000 square
foot retail building for Hobby Lobby.
PRESERVE WEST CAPITAL | 2
ABOUT THE TENANT HOBBY LOBBY
Hobby Lobby is a closely-held, privately-owned chain of retail
arts and crafts stores based in Oklahoma City, Oklahoma.
They operate more than 750 stores nationwide selling arts
and crafts supplies, baskets, beads, candles, frames, home-
decorating accessories, and silk flowers. The company opened
its first store in Oklahoma City in 1972. The company grew
steadily over the next twenty years, with 50 locations across
7 states in 1992. Over the past two decades the company
continued to grow at an exponential rate, with 100 stores by
FI LE PHOTO 1995, 200 by 1999, and more than 600 stores by 2015. Today,
the company operates more than 750 stores in forty-seven
states, employing more than 32,000 people. The company
is headquartered at a 9.2 million square foot manufacturing,
Hobby Lobby operates more distribution, and office complex in Oklahoma city .
The company also has operations in China, Hong Kong, and
than 750 stores in 47 states. the Philippines, and is the #3 craft and fabric retailer (behind
Michaels Stores and Jo-Ann Stores). Sister companies Crafts,
Etc! and HEMISPHERES supply Hobby Lobby stores with
merchandise, received from its Oklahoma distribution facility.
Hemispheres stores also sell a wide selection of furniture for
the entire home.
PRESERVE WEST CAPITAL | 3
SITE PLAN
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LIBERTY
PARKABOUT THE AREA
General Overview
Madison, Mississippi (population 26,031) is a city in Madison County. The city is a
suburb of Jackson, the state capital and largest urban center in the state, located
approximately 15 miles from downtown Jackson. Madison is one of the most
affluent communities in Mississippi, with the highest per capita personal income
and average household income in the state. The city is also one of the fastest
SITE growing in the state of Mississippi, with the third highest annual rate statewide
based on projected 2014-2019 population growth. The city consistently earns
top rankings in jobs, family-friendliness, schools, housing, and more, and has been
named the best place to live in Mississippi. Forbes ranked Madison the 15th best
suburb in which to retire in 2015.
The region benefits from a broad economic base in automotive manufacturing,
food processing and manufacturing, technical services, distribution/logistics,
aerospace, and more. In addition, the region provides targeted incentives to
expand the presence of healthcare, specialized manufacturing, professional and
information services, logistics, and film studio production in the region. Madison
County’s central location in the Southern United States provides access to major
markets across the south and southeast. The region benefits from relatively
low cost of living and a low cost of doing business, attracting both residents
and employers to the region. In addition, Madison is located in the heart of the
regional healthcare corridor, with residents benefiting from nine different hospital
facilities with new, state-of-the-art medical technologies and procedures.
Recent development activity in and around Madison includes the $16 million,
96,000 square foot Madison Healthplex Performance Training center, which
opened in early 2014, which provides physical fitness and training facilities,
sports medicine, and more to Madison and the surrounding region. In addition,
construction is underway of a $50 million, 1 million square foot logistics center for
Nissan in nearby Canton, which has brought 800+ new jobs to the region. Nissan’s
existing manufacturing facility in the region has produced more than 2.3 million
vehicles and employs 5,600 local workers. Other projects include expansion of
the Baptist Medical Site and The Fountains of Madison Madison, a new Raising
Cane’s, Zaxby’s and Ichiban, and ongoing expansions of existing retail hubs in
the city. The city benefits from strong retail occupancy rates, with zero big box
vacancy in the market.ABOUT THE AREA
Site Information
The subject property is centrally located with excellent access and visibility near
SITE the signalized intersection of Crawford Boulevard and Main Street/Highway 143
(18,000 AADT), near the junction of Main Street/Highway 143 and Interstate 55
(70,000 AADT) . The property benefits from the recent $2 million expansion
project of Crawford Boulevard adjacent to the site. The site additionally benefits
from strong, affluent demographics with a population of 67,694 within a five
mile radius and an annual rate since 2010 of 2.02% and an anticipated growth
rate of 10.5% within a mile’s radius by 2020. Average household income within 3
miles of the site exceeds $115,400, more than three times the median household
income for Mississippi. Median home value within five miles of the site is
$235,939, nearly twice the median home value for the state as a whole. The city
has benefited from strong retail occupancy rates, with no big box vacancy in the
Madison area.
The subject property is situated within a growing shopping center slated to
include more than 120,000 square feet of additional junior box and shops
tenants, as well as two hotel users. In addition, the site is adjacent to a shopping
center anchored by Lowe’s Home Improvement and Office Depot, with additional
tenants including Applebee’s, FedEx Office, Citizen’s National Bank, Chili’s, Chick-
Fil-A, and more. The site additionally neighbors a large shopping center with
tenants including Walmart Supercenter, Dick’s Sporting Goods, Stein Mart, Best
Buy, Michaels, HomeGoods, Ulta, Petco, Dollar Tree, Sam’s Club, Verizon, Taco
Bell, and more. Other major retail tenants neighboring the site include Kroger,
CVS, Walgreens, McAlister’s Deli, Popeye’s, McDonalds, and more. There is zero
vacancy in the big box retail category in the Madison market and high average
household incomes support substantial retail spending within the trade area. The
subject property additionally neighbors Rosa Scott High School, the ninth grade
campus of the Madison Central School District, with an enrollment of nearly
500 students, drawing additional traffic from students, teachers, and parents
proximal to the site. The site also neighbors Liberty Park, an approximately 124
acre municipal park with five baseball diamonds and six soccer fields.DEMOGRAPHICS
Crawford Boulevard & Highway 463 | Madison, MS
Top Employers
Madison County, MS
Nissan North America 6,000
2017 POPULATION MEDIAN HOME VALUE AVG. HOUSEHOLD INCOME
Madison County School District 1,500
102,283 $235,939 $115,447 Peco Foods of MS, Inc. 1,300
Xerox 1,250
Population Summary 3 Miles 5 Miles 7 Miles Kasai (M-Tek) 1,000
2010 Total Population 21,607 59,316 91,943 Vantec Hitachi Transport System 1,000
2017 Total Population 23,784 67,694 102,283
Yates Service 690
2022 Total Population 25,735 73,500 109,057
Average Household Income C Spire 624
2017 $115,447 $102,081 $91,882
Faurecia 520
2022 $125,552 $111,588 $101,402
Calsonic Kansei 504
Median Home Value
2017 $225,076 $235,939 $216,428
2022 $236,768 $249,222 $233,413
PRESERVE WEST CAPITAL | 9SITE RENDERING Michael Maffia Putnam Daily Managing Partner Partner - Brokerage Division 411 Borel Avenue, Suite 650 415.373.4060 415.445.5107 San Mateo, CA 94402 mike@preservewc.com putnam@preservewc.com D 415.373.4063 F 415.737.6018 CA RE License #01340853 CA RE License #01750064 www.preservewestcapital.com
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