Offering Memorandum PINEWOOD SQUARE SHOPPING CENTER
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PINEWOOD SQUARE SHOPPING CENTER
Offering Memorandum
1002 N. Spence Ave | Goldsboro, NC 27534
FOR SALE
NOT A PART
Jordan Kaufman
President & Managing Broker | Illuminate Real Estate
695 S. Colorado Blvd. Suite 480 | Denver, CO 80246
E. jkaufman@illuminaterealestate.com
P. 720.598.4990
Daniel Simon
Associate Broker | Illuminate Real Estate
695 S. Colorado Blvd. Suite 480 | Denver, CO 80246
dsimon@illuminaterealestate.com
P. 303.912.5831
Disclaimer This Confidential Memorandum has been prepared by Illuminate Real Estate, LLC (“IRE”) and is being furnished to you solely for the purpose of your review of the commercial property located at 1002 N. Spence Ave | Goldsboro, NC 27534 (the “Property”). The material contained in this Offering Memorandum shall be used for the purposes of evaluating the Property for acquisition and shall not be used for any purpose or made available to any other person without the express written consent of Illuminate Real Estate, LLC (“Broker”). By accepting the Confidential Memorandum, you acknowledge and agree that: (1) all of the information contained herein and any other information you will be receiving in connection with this transaction, whether oral, written or in any other form (collectively, the “Materials”), is confidential; (2) you will not reproduce the Confidential Memorandum in whole or in part; (3) if you do not wish to pursue this matter, you will return this Confidential Memorandum to IRE as soon as practicable together with all other materials relating to the Property which you may have received from IRE; and (4) any proposed actions by you which are inconsistent in any manner with the foregoing agreements will require the prior written consent of IRE. This Confidential Memorandum has been prepared by IRE, based upon certain information pertaining to the Property and any information obtained from IRE to assist interested parties in making their own evaluation of the Property is offered on a no representation or warranty provision other than customary warranties of title and is sold on an “as-is, where-is” basis and with all faults. The material and transaction does not purport to be all inclusive. This Confidential Memorandum contains descriptive materials, financial information and other data compiled for the convenience of parties interested in the Property. The Materials are being delivered by IRE to prospective investors with the understanding that it is not all inclusive and that it is qualified in its entirety by independent investigation by prospective investors of those matters which they deem appropriate in evaluating this offering without reliance upon IRE, the Broker or any of their respective affiliates or any of the information set out in the Materials. Neither IRE, the Broker, nor any of their respective affiliates have independently verified any of the information contained herein or in any of the Materials, and no representations or warranties as to the accuracy or completeness thereof or of any other kind whatsoever are made or intended and none should be inferred. IRE, for itself and its affiliates of the Property, expressly disclaim any and all liability for statements or representations, express or implied, contained herein or for omissions from the Materials or for any other written, oral or other format of communication transmitted to a prospective investor in the course of its evaluation of the proposed transaction. All summaries and discussions of documentation and/or financial information contained herein are qualified in their entirety by reference to the actual documents and/or financial statements, which upon request may be made available. The terms and conditions described herein are subject to change without notice. This Confidential Memorandum does not constitute an offer to accept any investment proposal but is merely a solicitation of interest with respect to the investment described herein. The Confidential Memorandum does not constitute an offer of security. The investment described herein may be financed or withdrawn from the market, without prior notice. By accepting this Confidential Memorandum you agree to release IRE and hold it harmless from any kind of claim, expense, or liability arising out of your discovery or purchase of the Property. IRE reserves the right to request the return of the Materials at any time. Ownership of the Property reserves the right to negotiate with one or more prospective investors at any time. Exclusively Offered By | Illuminate Real Estate Exclusively Offered By | Illuminate Real Estate Jordan Kaufman | President & Managing Broker Daniel Simon | Associate Broker 695 S. Colorado Blvd. Suite 480 Denver, CO 80246 695 S. Colorado Blvd. Suite 480 Denver, CO 80246 O: 720.598.4990 | M: 773.243.6688 O: 720.598.4990 | M: 303.912.5831 jkaufman@illuminaterealestate.com dsimon@illuminaterealestate.com
04 Investment Highlights
05 Investment Overview
06 Rent Roll
07 Financial Analysis
08 Property & Location Overview
CONTENTS
09 Property Photos
10 Locator Map
11 Trade Map
12 Tenant Overviews
14 Market Overview
TABLE OF
15 Demographics
16 Regional Map
17 Contact
INVESTMENT HIGHLIGHTS
100% leased shopping center anchored by Walmart Supercenter with 30+ year operating history
Rare, fee simple ownership opportunity for high demand Walmart Supercenter
Below market rent for Walmart combined with excellent sales translate to a very low occupancy cost
Most tenants operating on NNN leases with rental increases
In-line shops comprised of strong, diverse tenant mix including national tenants (Dollar Tree, Sally’s
Beauty, Cricket, GameStop, Great Clips) and local/regional tenants
Well established presence in the Goldsboro market with a loyal customer base and a long, proven
operating history since 1989
Walmart is an investment grade tenant with an S&P “AA” credit rating
Goldsboro is located 50 miles south east of Raleigh, 70 miles north east of Fayetteville, and 80 miles to
the nearest coastal city
Subject property is located 2-miles from the Seymour Johnson Airforce Base
Surrounded by national tenants including: Sam’s Club, Target, Lowe’s, Applebees and Harris Teeter to
name a few
Excellent visibility: ~50,000 VPD on U.S. 7 | 29,000 VPD on Highway 13 | 18,000 VPD on N. Spence Ave.
Strong demographics with over 32,065 people within a 3-mile radius and average HH incomes in
excess of $54,880.
04
INVESTMENT OVERVIEW
PRICE CAP RATE NOI
$12,574,000 6.75% $848,726
Pinewood Square Shopping Center | 1002 N. Spence Ave | Goldsboro, NC 27534
BUILDINGS: 2
UNITS: 15
*WALMART (60% OF TOTAL WALMART SF): 120,487 SF
RETAIL SHOPS: 31,752 SF
TOTAL BUILDING SF: 152,239 SF
YEAR BUILT: 1987/1991
PINS: #3519471491 & 3519460639 - Wayne County, NC
LAND SIZE: 13.82 acres (combined)
OCCUPANCY: 100%
*40% of total Walmart SF not a part sale – owned by others: This portion of the overall center consists of 81,643 sf on 7.65 acres. In the year 2000
Walmart expanded into this space which was formerly occupied by another single-tenant retail use. Ownership has confirmed both Walmart
leases run coterminous with each other. Please contact agent with questions.
FOR SALE
NOT A PART
120,487 SF 81,643 SF 31,752 SF
60% of total Walmart 40% of total Walmart
05
RENT ROLL
Tenant Sq Ft % sf Base Base Base Lease Lease Lease CAM/ Tax/ Ins./ Misc. Total Total Deposits
Rent/SF Monthly Annual Start End Type sqft sqft sqft Inc. NNN/ Annual
Rent Rent sf NNN $
Walmart 120,487 79.14% $2.52 $25,259.28 $306,606.86 8.3.1988 8.2.2023 Net - - - - - - $0.00
Frankie S. Walker 2,046 1.34% $19.40 $3,406.21 $40,874.52 11.1.1994 4.30.2021 Net $2.69 $0.87 $0.56 - $4.12 $8,429.52 $500.00
Two Kahn’D Brothers 2,400 1.60% $26.27 $5,253.00 $63,036.00 7.1.2013 6.30.2023 Net $2.69 $0.87 $0.57 - $4.13 $9,912.00 $1,700.00
Sally Beauty 1,600 1.10% $20.00 $2,666.67 $32,000.04 6.1.1988 7.31.2023 Net $2.69 $0.87 $0.49 - $4.05 $7,264.00 $0.00
Gamestop, Inc. 1,822 1.20% $17.50 $2,657.08 $31,884.96 11.1.2004 1.31.2022 Net $2.74 $0.88 $0.50 - $4.12 $7,506.64 $0.00
Bashir Seidi 1,440 0.90% $19.49 $2,339.00 $28,068.00 2.1.2009 3.31.2025 Net $3.25 $0.87 - $0.12 $4.24 $6,105.60 $3,420.00
Cricket Wireless 1,440 0.90% $18.40 $2,208.09 $26,497.08 3.1.2015 8.31.2020 Net $2.69 $0.87 $0.57 - $4.13 $5,947.20 $5,000.00
S&S Clips, LLC 1,360 0.90% $19.10 $2,164.64 $25,975.68 8.12.2010 9.30.2020 Net $2.69 $0.87 $0.49 - $4.05 $5,508.00 $2,512.60
Yan Yong Huang 1,360 0.90% $22.50 $2,550.00 $30,600.00 3.1.2015 2.28.2021 Gross - - - - - - $4,080.00
Dollar Stree Stores 11,506 7.60% $10.56 $10,125.25 $121,503.00 3.13.2004 3.31.2024 Net $2.56 $0.85 $0.44 - $3.85 $44,298.10 $0.00
Go Green Kiosk 0 0 N/A $250.00 $3,000.00 3.4.2015 MTM Net - - - - - - $0.00
Xieu Nguyen 1,378 0.90% $15.57 $1,787.96 $21,455.52 11.17.2015 5.16.2021 Net $3.25 $0.87 - - $4.12 $5,677.36 $2,285.00
Zhou Best Mart, Inc. 3,000 2.00% $19.40 $4,850.00 $58,200.00 7.29.2015 9.30.2025 Net - - - - - - $9,000.00
Century Finance, Inc. 2,400 1.60% $13.75 $2,750.00 $33,000.00 5.1.2016 4.30.2020 Net - - - - - - $2,700.00
Wells Fargo ATM 0 0 N/A $800.00 $9,600.00 4.1.2018 4.30.2028 Net - - - - - - $0.00
Total 152,239 100.00% $224.46 $69,067.18 $832,301.66 $100,648.42 $31,197.60
06
FINANCIAL ANALYSIS
Rental Revenue Income Expense
Rental Income: Maintenance & Repairs:
Walmart Rent $306,606.86 General $5,962.17
Retail Strip Rent $547,962.22 Electrical $5,271.85
Other Income: Roof $844.42
Percentage Rent $53,411.27 CAM:
Recovery Income: Landscaping Ext. $18,395.00
Taxes $22,357.86 Landscaping Other $1,869.00
Insurance $11,227.71 Landscaping Pond $600.00
CAM $67,250.24 Security $15,402.48
Prior Year Recovery Income: $5,022.15
Taxes $13,795.35 Parking Lot $5,461.00
Insurance $17,060.00 Sweeping $27,302.50
CAM ($411.62)
Other Income: $1,228.87
Security General & Admin:
$109.50
Reimbursement Management Fees $36,043.80
Misc $363.42 Phone & Equipment $1,861.80
Postage & Shipping $180.07
$1,039,732.81 Insurance:
GL $32,457.00
Other $2,384.00
Taxes:
Real Estate Taxes $30,720.01
$191,006.12
$848,726.69
07
PROPERTY & LOCATION OVERVIEW
Illuminate Real Estate is please to exclusively offer for sale, ownership's fee simple interest in Pinewood Square located at
1002 N. Spence Ave., Goldsboro, NC 27534. The subject property consists of a Walmart Supercenter and in-line shops
totaling 15 total units, 152,239 sf of improvements and is situated on a combined 13.82 acres of land. The center is
conveniently located directly off US Highway 70 with excellent visibility to the over 50,000 vehicles per day that travel
past the site. Pinewood is consistently 100% leased and maintains a healthy, synergistic mix of tenants including:
Walmart, Dollar Tree, Sally Beauty, GameStop, Great Clips, Cricket and several other local/regional tenants. Walmart boasts
an operating history of more than 30 years at this location that has included an expansion/remodel (2000) and benefits
from an extremely low rent when compared to the company’s store network. Further, Walmart’s maintains excellent
retail sales at this location translating to a healthy, low occupancy cost. The subject property is surrounded by a variety
of national retail tenants including: Sam’s Club, Target, Harris Teeter, PetSmart, Holiday Inn (new construction 2019)
Lowe’s Home Improvement and countless others. Just 2 miles south of the property sits Seymour Johnson Air Force
Base, which occupies 3,300 acres and is home to the 4th Fighter Wing and several other operations units. Goldsboro
is the county seat of Wayne County, NC and is a rapidly growing submarket of Raleigh, NC located just 50 miles from
Raleigh’s central business district. Area demographics indicate population counts of over 32,065 within a 3-mile radius
with average HH incomes in excess of $54,880 within same.
.
08
PROPERTY PHOTOS
09
LOCATOR MAP
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11TENANT OVERVIEWS
GameStop is an American video game, consumer electronics retailer. The company operates 7,276 retail stores throughout the United States, Canada, Australia, New
Zealand, and Europe. The company's retail stores primarily operate under the GameStop, EB Games, ThinkGeek, and Micromania brands. In addition to retail stores,
GameStop also owns Game Informer, a video game magazine; Simply Mac, an Apple products reseller.
www.GameStop.com
Sally Beauty Holdings, Inc. is the largest distributor of professional beauty products in the U.S. based on store count. The Company operates primarily through two
business segments, Sally Beauty Supply and Beauty Systems Group (BSG).
- 50 years in the business
- Leader in stable, growing professional beauty supply channel
- Headquartered in Denton, Texas
- 27,000 full-time and part-time employees working in 12 countries
- Over 5,000 stores worldwide
- Over $3.9 billion in sales in 2018
Operations throughout the United States and Puerto Rico, the United Kingdom, Belgium, Canada, Chile, Mexico, Peru, France, Ireland, Spain, Germany, and the
Netherlands Product categories include hair color, hair care, hair dryers and hair styling appliances, nail and skin care, and other beauty products
www.SallyBeauty.com | Stock Symbol: SBH
Great Clips is a hair salon franchise with over 4,100 locations across the United States and Canada. In 2013, it had system-wide sales of $1.03 billion. Over 30,000
stylists are employed by Great Clips salons. The salons have been noted as a good investment as they are a low-cost franchise with high growth potential. In 2011,
Great Clips launched Online Check-In, the industry's first real-time check-in application.
www.GreatClips.com
.
12TENANT OVERVIEWS
Walmart is the largest retailer in the world. Walmart has a few store types, each with their own characteristics. On the large end, the Walmart Supercenters have
the widest range of items stocked, as well as a full supermarket. These supercenters are typically 182,000 square feet. On the small end, the Walmart
Neighborhood Market concept. These are a smaller-footprint option, 38,000 square feet, and contain a pharmacy, groceries, and some merchandise. In the
middle is the Walmart Discount Store, which are typically 106,000 square feet. Walmart stores are rare investments on the net lease market with the transaction
size, acreage, and square footage of the investment (much larger on all counts than the typical net lease property) appealing to a more select group of investors.
High annual rents and relatively low cap rates means the typical net lease Walmart transaction is over $10 M. Walmart Stores, Inc. (NYSE: WMT) is an American
public multinational corporation that runs chains of large discount department stores and warehouse stores. The company was Fortune’s largest public
corporation in 2018 by revenue, $500.3 B. Walmart was founded by Sam Walton in 1962, incorporated on October 31, 1969, and publicly traded on the New
York Stock Exchange in 1972. Headquartered in Bentonville, Arkansas, it is the largest majority private employer. Walmart is also the largest grocery retailer in
the United States. It also owns and operates the Sam's Club retail warehouses in North America. Walmart serves nearly 265 million customer each week from
their more than 11,200 stores under 55 banners in 27 countries.
www.walmart.com | Stock Symbol: WMT
.
Dollar Tree is a chain of discount stores that sell all items for $1.00 or less. Dollar Tree is an attractive tenant for the Net Lease Investor who prioritizes a higher
cap rate. New locations typically ranges between 8,000 - 12,000 gross square feet. Freestanding locations are typically located in a strong retail corridor with
street presence, easy ingress/egress, and ample parking. Dollar Tree also targets regional or neighborhood centers anchored by "big box" discounters or dominant
grocery stores for their stores. Though not as flashy as other prominent net lease tenants, Dollar Tree has found success focusing on its core consumer market of
value minded customers. Headquartered in Chesapeake, VA, Dollar Tree is the largest and most successful single-price-point retailer in North America. In June
2015, Dollar Tree acquired Family Dollar Stores, Inc. and its’ more than 8,200 stores, which made Dollar Tree Inc, leading operator of discount variety retail stores
with 13,600 locations. Today, they now operate over 15,000 locations across the US. Dollar Tree intends to drive future store openings by capitalizing on insights
regarding location, target customer profile, competitive dynamics and cost structure. Over the long-term, Dollar Tree plans to operate more than 7,000 Dollar
Tree stores and 12,000 Family Dollar stores across the United States.
www.dollartree.com | Stock Symbol: DLTR
Cricket Wireless is an American prepaid wireless service provider in the United States. Cricket Wireless offers voice, text, and data with no annual contracts. The
power of Cricket is its nationwide 4G LTE network that covers more than 319 million people; easy and affordable plans and prices that includes monthly taxes
and fees; and a great selection of phones customers love. Cricket Wireless is a wholly owned subsidiary of AT&T Inc, a publicly traded company (NYSE: T) and
investment grade rated company with a Standard & Poor’s rating of BBB+. Cricket Wireless was founded in 1999 by Leap Wireless International, Inc. The
company’s first market was Chattanooga, Tennessee and through much of its early growth became known as a network focused on small, rural markets. In July
2013, AT&T Inc. agreed to acquire Cricket Wireless’ parent company Leap Wireless International for $1.2 billion. The merger was approved by the Federal
.
Communications Commission in March 2014. Cricket Wireless is headquartered in Atlanta, Georgia.
www.cricketwireless.com
13MARKET OVERVIEW
ABOUT GOLDSBORO | NORTH CAROLINA/AIRFORCE BASE
Goldsboro is a city in Wayne County, North Carolina, United States. The City of Goldsboro had a population of 35,599 as of July 1, 2019. It is
the principal city of and is included in the Goldsboro, North Carolina Metropolitan Statistical Area. The nearby town of Waynesboro was
founded in 1787 and Goldsboro was incorporated in 1847. It is the county seat of Wayne County. The city is situated in North Carolina’s
Coastal Plain and is bordered on the south by the Neuse River and the west by the Little River, about 43 miles southwest of Greenville-
and 55 miles southeast of Raleigh, the state capital and 87 miles northwest of Wilmington in Southeastern North Carolina. Goldsboro is
best known as home to Seymour Johnson Air Force Base. The Cliffs of Neuse State Park, which is in the neighborhood, occupies an area
of 751 acres. It is located along the southern banks of the Neuse River. The park has several hiking trails, picnic areas, a swimming area,
fishing areas, and a nature museum. Herman Park has tennis courts, a recreational center, picnic shelters, miniature train, a
turn-of-the-century park house, goldfish pond, gazebo, children’s playground, and a fountain. Wayne Memorial Hospital (North
Carolina), a medical facility located in Goldsboro, is the county’s second largest employer. Cherry Hospital is a psychiatric hospital which
first started in 1880 as a facility to treat mentally ill African Americans. A museum depicting its history is also part of the hospital
campus. O’Berry Neuro-Medical Center is a North Carolina Department of Health and Human Services hospital providing rehabilitative
services to the mentally retarded and people with developmental disabilities.
.
14DEMOGRAPHICS
2019 Summary 1 mile 3 miles 5 miles
Population 14,582 32,065 47,792
Est. Avg. Household Income $76,824 $54,880 $54,447
Total Households 5,431 13,756 19,862
Total Businesses 457 2,340 2,870
Total Daytime Employees 5,229 28,558 39,470
Trade Area Size 3.1 sq mi 28.3 sq mi 78 sq mi
1 Mile
3 Miles
5 Miles
15REGIONAL MAP
RALEIGH 61 MIN | 55 MILES
WILSON 34 MIN | 29 MILES
GREENVILLE 57 MIN | 40 MILES
PINEWOOD SQUARE
SHOPPING CENTER
16Jordan Kaufman
President & Managing Broker | Illuminate Real Estate
Office: 720.598.4990 | Mobile: 773.243.6688
jkaufman@illuminaterealestate.com
Daniel Simon
Associate Broker | Illuminate Real Estate
Office: 720.598.4990 | Mobile: 303.912.5831
dsimon@illuminaterealestate.com
695 S. Colorado Blvd., Suite 480
Denver, CO 80246
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