OFFERING MEMORANDUM - 1522-1526 Meeting Blvd. | Rock Hill, SC - Sands Investment Group
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1522-1526 Meeting Blvd. | Rock Hill, SC OFFERING MEMORANDUM
Exclusively Marketed By: Sands Investment Group
CHRIS SANDS Sands Investment Group
Lic. 93103 2701 Ocean Park Boulevard, Suite 140
Santa Monica, CA 90405
844.4.SIG.NNN
310.870.3282 | DIRECT
chris@SIGnnn.com
1522-1526 Meeting Blvd. www.SIGnnn.com
Rock Hill, SC 29730
MAX FREEDMAN
Lic. 01875150
512.766.2711 | DIRECT
max@SIGnnn.com
INVESTMENT SUMMARY Investment Summary
Investment Highlights
AREA OVERVIEW Location & Area Maps
Retail Map
City Overview
© 2016 Sands Investment Group (SIG). The information contained in this ‘Offering
Memorandum,’ has been obtained from sources believed to be reliable. Sands Investment
TENANT PROFILE Tenant Profiles Group does not doubt its accuracy, however, Sands Investment Group makes no guarantee,
representation or warranty about the accuracy contained herein. It is the responsibility of
each individual to conduct thorough due diligence on any and all information that is passed
on about the property to determine it’s accuracy and completeness. Any and all projections,
market assumptions and cash flow analysis are used to help determine a potential overview
LEASE ABSTRACT Financial Information on the property, however there is no guarantee or assurance these projections, market
Lease Summary assumptions and cash flow analysis are subject to change with property and market
conditions. Sands Investment Group encourages all potential interested buyers to seek advice
Rent Roll from your tax, financial and legal advisors before making any real estate purchase and
transaction.
INVESTMENT SUMMARY
OFFERING SUMMARY
PRICE $14,070,000
CAP 8.05%
NOI $1,132,027
PRICE PER SF $106.09
YEARS REMAINING: KOHL’S 10+ Years
YEARS REMAINING: HOBLOB 5 + Years
PROPERTY SUMMARY
ADDRESS 1522-1526 Meeting Blvd
Rock Hill, NC 29730
COUNTY York
BUILDING AREA 132,629 SF
LAND AREA 14.08 AC
YEAR BUILT 2007
INVESTMENT HIGHLIGHTS HIGHLIGHTS
• 4 Tenant Retail Center – Anchored By
Kohl’s and Hobby Lobby
• Long Term Leases – Kohl’s (2027) and
Hobby Lobby (2021)
• Adjacent to Walmart Supercenter and
Regional Mall
• 100% Leased – No Vacancy
• Over 14 Acres of Land and 530+
Parking Spaces (4:1 Parking)
• Charlotte MSA – 1.8M Population
SUBJECT PROPERTY DEMOGRAPHICS
1 Mile 3 Mile 5 Mile
Population 2,470 16,810 77,216
Average HH Income $50,038 $46,206 $46,246
Vehicles per Day
(I-77 to Meeting Blvd) 32,800
LOCATION MAP
AERIAL MAP
RETAIL MAP
AREA OVERVIEW City Overview
Rock Hill, South Carolina is located in the north-central
area of South Carolina, approximately 20 miles south
along the I-77 corridor from Charlotte, North Carolina.
Rock Hill offers unique options and benefits for
business owners that other cities and counties in the
Charlotte metro area simply can't compete with. Rock
Hill also has advantageous tax laws, award-winning
employee training programs and lucrative incentives
that make it easy for business to grow and prosper.
Deciding where to start or relocate a business depends
largely on accessibility, and Rock Hill boasts numerous
transportation advantages. I-77 runs directly through
Rock Hill, and I-85 runs near the northwestern part of
York County. Charlotte-Douglas International Airport is
less than 30 minutes away, while the Port of Charleston,
the busiest container port in the Southeast is only a
short three hour drive away. Rock Hill is strategically
located in the absolute center of the East Coast, and
with only a two hour flight time or one day motor
freight delivery time, businesses in Rock Hill can reach
almost 60% of the nation's general population and its
industrial base.
In addition to business benefits, Rock Hill is a
spectacular community that combines hometown charm
with big-city amenities for its residents. Rock Hill's
proximity to Charlotte's international airport, downtown
nightlife, restaurants, professional sports and
entertainment venues guarantees an exceptional
quality of life long after the workday is over. Named
one of America's 100 Best Communities For Young
People by America's Promise Alliance in 2008, Rock Hill
is justly proud of its excellent schools, superb parks,
quaint downtown area and delightful offerings of arts
and cultural venues. Rock Hill is also a lively college
town that boasts three colleges with more than 10,000
students among its 70,000 residents. Excellent
healthcare services, abundant shopping and a wide
array of dining options make Rock Hill the perfect place
to live with none of the typical big-city drawbacks.
TENANT PROFILE Kohl's Corporation is an American department store chain headquartered in the Milwaukee suburb of Menomonee Falls, Wisconsin, operating 1,200 stores in 49 states and generates annual sales in excess of $19 Billion. Kohl's stores feature nationally recognized brand- name merchandise, exclusive labels, and private-branded goods, virtually the same merchandise mix as traditional department stores. The stores sell a variety of goods, such as apparel, shoes, and accessories for women, children and men, and home products such as small electronics, kitchen electrics, electric shavers, toothbrushes, vacuum cleaners & floor care, bedding, toys, and luggage. Although some locations are in enclosed shopping malls, the majority of stores are free-standing. Kohl's operates differently from traditional department stores, like Macy's or JCPenney. The most noticeable distinction is that Kohl's stores have centralized check-out aisles much like grocery stores, where a single line is used for check-outs. Kohl's also uses a "racetrack" aisle that circles the entire store, a technique borrowed from discount stores but rarely used in department stores.
TENANT PROFILE In 1970, entrepreneurs David and Barbara Green, along with their young family, began making miniature picture frames in their garage. A few years later, on August 3, 1972, the Green family opened the first Hobby Lobby store with a mere 300 square feet of retail space. Hobby Lobby has not stopped growing since. Today, Hobby Lobby Stores, Inc., headquartered in Oklahoma City, OK, operates over 600 stores across the nation that average 55,000 square feet. Hobby Lobby is an industry leading retailer offering more than 70,000 arts, crafts, hobbies, home decor, Holiday, and seasonal products. Hobby Lobby is included in Forbes’ annual list of America’s largest private companies. While Hobby Lobby continues to grow steadily, the company carries no long-term debt.
FINANCIAL INFORMATION
ESTIMATED OPERATING INFORMATION ESTIMATED OPERATING EXPENSES
INCOME TAXES $326,283
SCHEDULED BASE RENT $1,149,963 INSURANCE $13,985
PLUS RECAPTURE $343,908 CAM $3,640
TOTAL GROSS POTENTIAL INCOME $1,493,871
NON-OPERATING $2,000
RESERVES $13,263
LESS VACANCY (RENT) $0
MANAGEMENT $2,673
LESS VACANCY (NNN) $0
TOTAL $361,844
EFFECTIVE OPERATING INCOME $1,493,871
LESS EXPENSES $348,581
LESS RESERVES $13,263 ASSUMABLE LOAN INFORMATION
NET OPERATING INCOME $1,132,027 UNPAID PRINCIPAL BALANCE (Approximate) $8,539,000
LESS 1ST LOAN PAYMENT $860,688 ORIGINAL PRINCIPAL BALANCE $10,400,000
CASH FLOW $271,339 DOWN PAYMENT 39.31% $5,531,000
CASH ON CASH 5.25% INTEREST RATE 6.73% Fixed
ANNUAL DEBT SERVICE $860,688
NOTES:
1. Kohl’s pays their own portion of Taxes directly ($140,947). AMORTIZATION 25 Years
2. Kohl’s pays their own Insurance directly.
3. Kohl’s & Hobby Lobby are each responsible for their portion of
MATURITY DATE 13 Years June 1, 2027
the parking lot maintenance and expense costs directly.
4. The listed CAM expenses are for the inline tenants only.
5. Management is 3% of the inline tenant income.
ASSUMPTION FEE 1.5%LEASE SUMMARY
LEASE ABSTRACT
TENANT Kohl’s
68,890 SF Building
PREMISES
51.94% of the Center
LEASE COMMENCEMENT
April 1, 2007
LEASE EXPIRATION April 31, 2027
LEASE TERM 20 Years (11+ Years Remaining)
RENEWAL OPTIONS Five (5) – Five (5) Year Options
RENT INCREASES 10% in 2027
LEASE TYPE Triple Net Fee Simple Lease
USE Department Store
Tenant Pays Directly
PROPERTY TAXES
for their Parcel
INSURANCE Tenant’s Responsibility
ROOF & STRUCTURE Landlord’s Responsibility
REPAIRS & MAINTENANCE Tenant’s ResponsibilityLEASE SUMMARY
LEASE ABSTRACT
TENANT Hobby Lobby
58,439 SF Building
PREMISES
44.06% of the Center
LEASE COMMENCEMENT March 1, 2007
LEASE EXPIRATION September 30, 2021
LEASE TERM 15 Years (5+ Years Remaining)
RENEWAL OPTIONS Three (3) – Five (5) Year Options
RENT INCREASES None
LEASE TYPE Triple Net Fee Simple Lease
USE Department Store
Tenant Pays Directly
PROPERTY TAXES
for their Parcel
INSURANCE Tenant’s Responsibility
ROOF & STRUCTURE Landlord’s Responsibility
REPAIRS & MAINTENANCE Tenant’s ResponsibilityRENT ROLL
Square % of Increase
TENANT NAME Annual Rent Rent/SF % Of Total Increases Begin End Options
Footage Property Date
Kohl's 68,890 51.94% $616,565.04 $8.95 53.90% 2027 10% 4/07 4/27 5 x 5 year
Hobby Lobby 58,439 44.06% $438,297.96 $7.50 38.31% 3/07 9/21 3 X 5 year
Platos Closet 3,000 2.26% $49,500.00 $16.50 4.33% 1/17
Movay Salon 2,300 1.73% $39,600.00 $17.22 2.94% 3/17
NDEV Easement 0 0.00% $6,000.00 $0.00 0.52% Indefinite
TOTALS / AVERAGES 132,629 100% $1,143,963 $8.63 100%
OCCUPIED SF 132,629 100%
VACANT SF 0 0.00%
TOTAL SF 132,629 100%CONFIDENTIALITY AGREEEMENT 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 Sands Investment Group and should not be made available to any other person or entity without the written consent of Sands Investment Group. This Offering Memorandum has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Offering Memorandum has been obtained from sources we believe to be reliable; however, Sands Investment Group has not verified, and will not verify, any of the information contained herein, nor has Sands Investment Group conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. By receipt of this Memorandum, you agree that this Memorandum and its contents are of confidential nature, that you will hold and treat it in the strictest confidence and that you will not disclose its contents in any manner detrimental to the interest of the Owner. You also agree that by accepting this Memorandum you agree to release Sands Investment Group and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this property.
Exclusively Marketed By: CHRIS SANDS MAX FREEDMAN Lic. 93103 Lic. 01875150 310.870.3282 | DIRECT 512.766.2711 | DIRECT chris@SIGnnn.com max@SIGnnn.com 844.4.SIG.NNN | F: 844.328.5905 | WWW.SIGNNN.COM | 2701 OCEAN PARK BLVD, SUITE 140 | SANTA MONICA, CA 90405
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