JCPENNEY GROUND LEASE - 5651 ARIZONA 95 LAKE HAVASU CITY, AZ 86404 Offering Memorandum - LoopNet
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REPRESENTATICE
Offering Memorandum
JCPENNEY GROUND LEASE
5651 ARIZONA 95
Lakewood,
LAKE HAVASU CO
CITY, AZ 86404
AE R I AL P HOTO JCPENNEY GROUND LEASE
LAKE
HAVASU
CITY
AIRPORT
95
LAKE HAVASU
HIGH SCHOOL
1,880 STUDENTS
LAKE
CALIFORNIA
HAVASU
ARIZONA
STATE
PARK
LAKE HAVASU
95 GOLF CLUB
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
2 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
AE R I AL P HOTO JCPENNEY GROUND LEASE
MCDONALD’S
Starbucks
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 3
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
AE R I AL P HOTO JCPENNEY GROUND LEASE
PROPOSED
FUTURE BREWERY/
RESTUARNT USE DISTRIBUTOR
/RETAIL USE
30,000 SF
DISTRIBUTOR
40,000 SF
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
4 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
E
AEXE
RCUTI
I AL PVE SUM M A RY
HOTO JCPENNEY GROUND LEASE
JCPENNEY GROUND LEASE
5651 Arizona 95
Lake Havasu City, AZ 86404
FINANCIAL SUMMARY ANNUALIZED OPERATING DATA
Price $3,781,000 LEASE YEARS ANNUAL RENT CAP RATE
Down Payment 100% $3,781,000 Current - 2/28/2028 $302,500.00 8.00%
Cap Rate 8.0% OPTIONS ANNUAL RENT CAP RATE
Building SF 105,422 SF Option 1 $332,750.00 8.80%
Net Cash Flow 8.0% $302,500 Option 2 $366,025.00 9.68%
Year Built 2008 Option 3 $402,627.50 10.65%
Lot Size 7.1 Acres Option 4 $442,890.25 11.71%
Option 5 $487,179.28 12.88%
THE HUMAN BEAN LEASE SUMMARY Option 6 $535,897.20 14.17%
Lease Type Absolute Triple-Net (NNN) Ground Lease Option 7 $589,486.92 15.59%
Tenant JCPenney Corporation, Inc. Option 8 $648,435.62 17.15%
Lease Commencement Date March 1, 2008 Option 9 $713,279.18 18.86%
Lease Expiration Date February 28, 2028 Option 10 $784,607.09 20.75%
Original Lease Term 20 Years
Effective Lease Term Remaining 10 Years BASE RENT $302,500
Flat for Remainder of Term; 10% Bumps in the Net Operating Income $302,500
Rental Increases
Options Only
Total Return 8.0% $302,500
Renewal Options 10, 5 Year Options
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 5
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
AE RAINT
TEN AL OVE
P HOTO
R V IEW JCPENNEY GROUND LEASE
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
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
6 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
P
AERR
OP ERTY
I AL DESCR IP TION
P HOTO JCPENNEY GROUND LEASE
INVESTMENT HIGHLIGHTS LOCATION OVERVIEW
• Absolute Triple-Net (NNN) Lease with 10 Years Remaining Located in Arizona’s Mohave County, Lake Havasu City is the southernmost community
• Priced Way Below Replacement Value at Only $41/SF 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
• High-End JCPenney Store, which Includes the Sephora Concept and Salon Inside Bridge, relocated from England, links the mainland to marinas and looped path in an
the Premises area known as the Island. The Lake Havasu Museum of History documents Native
• Amazon Coming Soon to Adjacent Property Americans and steamboat history, and the Lake Havasu State Park has beaches with
• Situated in The Shops at Lake Havasu – Other Major Tenants Include Walmart mountain views, picnic spots and birdlife.
Supercenter, Dillard’s, PetSmart, and Star Cinemas Known as a popular vacation spot in Arizona, Lake Havasu City is a rare escape with
• Minutes to Lake Havasu State Park – Over Half a Million Visitors Each Year appealing natural beauty and more than 300 days of sunshine every year. With more
Starbucks
than 60 miles of navigable waterways and no speed or size restrictions for boats,
• 55,975 Residents in Growing Lake Havasu Trade Area
Lake Havasu offers possibilities for aquatic adventures. With its proximity to Southern
• Excellent Visibility – Directly Off AZ Highway 95 California, Las Vegas and Phoenix, many boaters in the area have made Lake Havasu
• Centrally Located Between Las Vegas, NV and Phoenix, AZ 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,
DEMOGRAPHIC REPORT and enjoying the city’s nightlife at various pubs and bars.
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%
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
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 7
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
P
AERR
OP ERTY
I AL P HOTOS
P HOTO 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
8 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
L
AEO CAL
R I AL MAP
P HOTO JCPENNEY GROUND LEASE
Starbucks
MAP
Williams-Sonoma
6 MILES 8 MILES 144 MILES 199 MILES
Lake Havasu London Las Vegas, Phoenix,
State Park Bridge Nevada Arizona
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 9
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 Z0070620Net Leased Disclaimer Confidentiality Agreement
Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as
follows: 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
By accepting this Marketing Brochure, you agree to treat the information contained & Millichap and it should not be made available to any other person or entity without
herein regarding the lease terms as confidential and proprietary and to only use such the written consent of Marcus & Millichap. By taking possession of and reviewing the
information to evaluate a potential purchase of this net leased property. 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
The information contained in this Marketing Brochure has been obtained from sources or duplicate any part of the offering memorandum. If you have no interest in the subject
we believe to be reliable. However, Marcus & Millichap has not and will not verify any of property at this time, please return this offering memorandum to Marcus & Millichap.
this information, nor has Marcus & Millichap conducted any investigation regarding these
matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever This offering memorandum has been prepared to provide summary, unverified financial
about the accuracy or completeness of any information provided. 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
As the Buyer of a net leased property, it is the Buyer’s responsibility to independently substitute for a thorough due diligence investigation. Marcus & Millichap has not made
confirm the accuracy and completeness of all material information before completing any any investigation, and makes no warranty or representation with respect to the income
purchase. This Marketing Brochure is not a substitute for your thorough due diligence or expenses for the subject property, the future projected financial performance of the
investigation of this investment opportunity. Marcus & Millichap expressly denies any property, the size and square footage of the property and improvements, the presence
obligation to conduct a due diligence examination of this Property for Buyer. or absence of contaminating substances, PCBs or asbestos, the compliance with local,
state and federal regulations, the physical condition of the improvements thereon, or
Any projections, opinions, assumptions or estimates used in this Marketing Brochure are the financial condition or business prospects of any tenant, or any tenant’s plans or
for example only and do not represent the current or future performance of this property. intentions to continue its occupancy of the subject property. The information contained
The value of a net leased property to you depends on factors that should be evaluated by in this offering memorandum has been obtained from sources we believe to be
you and your tax, financial and legal advisors. 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
Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a care- matters and makes no warranty or representation whatsoever regarding the accuracy or
ful, independent investigation of any net leased property to determine to your satisfaction completeness of the information provided. All potential buyers must take appropriate
with the suitability of the property for your needs. 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.
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 ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT THE MARCUS &
at this or other locations is an important consideration, it is not a guarantee of future MILLICHAP AGENT FOR MORE DETAILS.
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.exclusively listed
Exclusively listed by:
RYAN SARBINOFF OFFICES NATIONWIDE
Broker of Record www.marcusmillichap.com
PHOENIX OFFICE
License #: BR675146000
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