OFFERING - NNN Properties
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A p p l e g r e e n G a s S t a t i o n – I s l i p , N e w Yo r k
❖ Applegreen Recently Acquired By Blackstone ❖ Qualifies For 100% Bonus Depreciation In Year One of
❖ $3.6BN Revenue & Over 550 Locations Worldwide | 191 Property Ownership
Locations In USA ❖ Rental Increases of 15% Every Five Years
OFFERING
MEMORANDUM 540 Islip Ave - Islip, New York 11751
Confidentiality and Disclaimer
Marcus & Millichap hereby advises all prospective purchasers of properties, including newly-constructed facilities or newly- income or expenses for the subject property, the future projected
Net Leased property as follows: acquired locations, may be set based on a tenant’s projected financial performance of the property, the size and square
sales with little or no record of actual performance, or footage of the property and improvements, the presence or
The information contained in this Marketing Brochure has been comparable rents for the area. Returns are not guaranteed; the absence of contaminating substances, PCB’s or asbestos, the
obtained from sources we believe to be reliable. However, tenant and any guarantors may fail to pay the lease rent or compliance with State and Federal regulations, the physical
Marcus & Millichap has not and will not verify any of this property taxes, or may fail to comply with other material terms of condition of the improvements thereon, or the financial
information, nor has Marcus & Millichap conducted any the lease; cash flow may be interrupted in part or in whole due to condition or business prospects of any tenant, or any tenant’s
investigation regarding these matters. Marcus & Millichap makes market, economic, environmental or other conditions. Regardless plans or intentions to continue its occupancy of the subject
no guarantee, warranty or representation whatsoever about the of tenant history and lease guarantees, Buyer is responsible for property. The information contained in this Marketing Brochure
accuracy or completeness of any information provided. conducting his/her own investigation of all matters affecting the has been obtained from sources we believe to be reliable;
intrinsic value of the property and the value of any long-term however, Marcus & Millichap has not verified, and will not verify,
As the Buyer of a net leased property, it is the Buyer’s lease, including the likelihood of locating a replacement tenant if any of the information contained herein, nor has Marcus &
responsibility to independently confirm the accuracy and the current tenant should default or abandon the property, and Millichap conducted any investigation regarding these matters
completeness of all material information before completing any the lease terms that Buyer may be able to negotiate with a and makes no warranty or representation whatsoever regarding
purchase. This Marketing Brochure is not a substitute for your potential replacement tenant considering the location of the the accuracy or completeness of the information provided. All
thorough due diligence investigation of this investment property, and Buyer’s legal ability to make alternate use of the potential buyers must take appropriate measures to verify all of
opportunity. Marcus & Millichap expressly denies any obligation property. the information set forth herein.
to conduct a due diligence examination of this Property for Buyer. By accepting this Marketing Brochure you agree to release
Marcus & Millichap Real Estate Investment Services and hold it NON-ENDORSEMENT NOTICE
Any projections, opinions, assumptions or estimates used in this harmless from any kind of claim, cost, expense, or liability arising
Marketing Brochure are for example only and do not represent out of your investigation and/or purchase of this net leased Marcus & Millichap Real Estate Investment Services, Inc.
the current or future performance of this property. The value of a property. (“M&M”) is not affiliated with, sponsored by, or endorsed by any
net leased property to you depends on factors that should be commercial tenant or lessee identified in this marketing package.
evaluated by you and your tax, financial and legal advisors. CONFIDENTIALITY AND DISCLAIMER The presence of any corporation’s logo or name is not intended
to indicate or imply affiliation with, or sponsorship or
Buyer and Buyer’s tax, financial, legal, and construction advisors The information contained in the following Marketing Brochure is endorsement by, said corporation of M&M, its affiliates or
should conduct a careful, independent investigation of any net proprietary and strictly confidential. It is intended to be reviewed subsidiaries, or any agent, product, service, or commercial listing
leased property to determine to your satisfaction with the only by the party receiving it from Marcus & Millichap and should of M&M, and is solely included for the purpose of providing
suitability of the property for your needs. not be made available to any other person or entity without the tenant lessee information about this listing to prospective
written consent of Marcus & Millichap. This Marketing Brochure customers.
Like all real estate investments, this investment carries significant has been prepared to provide summary, unverified information
risks. Buyer and Buyer’s legal and financial advisors must request to prospective purchasers, and to establish only a preliminary ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE
and carefully review all legal and financial documents related to level of interest in the subject property. The information CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE
the property and tenant. While the tenant’s past performance at contained herein is not a substitute for a thorough due diligence DETAILS.
this or other locations is an important consideration, it is not a investigation. Marcus & Millichap has not made any investigation,
guarantee of future success. Similarly, the lease rate for some and makes no warranty or representation, with respect to the
SPECIAL COVID-19 NOTICE
All potential buyers are strongly advised to take advantage of their opportunities and obligations to conduct thorough due diligence and
seek expert opinions as they may deem necessary, especially given the unpredictable changes resulting from the continuing COVID-19
pandemic. Marcus & Millichap has not been retained to perform, and cannot conduct, due diligence on behalf of any prospective
purchaser. Marcus & Millichap’s principal expertise is in marketing investment properties and acting as intermediaries between buyers
and sellers. Marcus & Millichap and its investment professionals cannot and will not act as lawyers, accountants, contractors, or
engineers. All potential buyers are admonished and advised to engage other professionals on legal issues, tax, regulatory, financial, and
accounting matters, and for questions involving the property’s physical condition or financial outlook. Projections and pro forma
financial statements are not guarantees and, given the potential volatility created by COVID-19, all potential buyers should be 540 Islip Ave - Islip, New York 11751
comfortable with and rely solely on their own projections, analyses, and decision-making.
Table of Contents • Investment Highlights 4 • Financial Analysis 5 • Bonus Depreciation 6 • Tenant Overview 7-11 • Surrounding Area 12 • Property Photos 13-14 • Location Overview 15 • Local Map 16 • Regional Map 17 • Demographics / Market Overview 18-19
Investment Highlights
PRICE: $2,738,095 | CAP: 5.25% | RENT: $143,750
Subject Property
About the Investment
✓ 20-Year Absolute Triple Net (NNN) Lease | 14.2 Years Remaining in Initial Term
✓ Attractive Rental Increases| 15.0% Every 5 Years
✓ Qualifies for 100% Bonus Depreciation in Year One of Ownership
✓ Corporate Guarantee By Petrogas Group US, Inc, 191 Locations in the United States
✓ Long Island Net Leased Asset | Average Income within a One-Mile Radius Exceeds
$119,000
✓ Two (2), Five (5)-Year Tenant Renewal Options
About the Location
✓ Dense Urban Infill | The Home Depot, Target, Best Buy, Kohl’s, Aldi, Shop Rite,
Marshalls, Stop & Shop, Staples, and Many Others
✓ Strong Demographics | 234,600 Individuals Within a Five-Mile Radius
✓ Compelling Location Fundamentals | Less Than an hour Drive From New York City
✓ Excellent Traffic Counts | Over 91,200 and 51,900 Vehicles Per Day Along Southern
Highway (Rt-27) and Southern State Parkway Representative Photo
✓ New York Institute of Technology | Located Less Than a Half-Mile Away | Enrollment
Over 8,300 Students Subject Property
✓ Located Minutes from the Westfield South Shore Mall | Over 1,165,000 sqft and
Nearly 100 Stores
About the Tenant / Brand
✓ Publicly Traded Company on the London Stock Exchange (APGN)
✓ Major Gas Retailor in the Republic of Ireland, the United Kingdom, and the U.S.
✓ Growing International Presence with 556 locations as of December 2019
✓ Owned by Petrogas Global and Operated by Petrogas Group US, Inc
✓ Blackstone Group Recently Acquired 41.3% Stake on 22nd of December 2020
✓ “Low Fuel Prices Always” and “Better Value Always”
Representative Photo
Applegreen – Islip, NY 4
Financial Analysis
PRICE: $2,738,095 | CAP: 5.25% | RENT: $143,750
PROPERTY DESCRIPTION RENT SCHEDULE
Property Applegreen Lease Year(s) Annual Rent Monthly Rent Rent Escalation (%)
Property Address 540 Islip Ave 4/1/2020 - 3/31/2021 $143,750 $11,979 -
4/1/2021 - 3/31/2022 $143,750 $11,979 -
City, State, ZIP Islip, NY, 11751
4/1/2022 - 3/31/2023 $143,750 $11,979 -
Building Size 1,700 4/1/2023 - 3/31/2024 $143,750 $11,979 -
Lot Size +/- 0.43 Acres 4/1/2024 - 3/31/2025 $143,750 $11,979 -
Type of Ownership Fee Simple 4/1/2025 - 3/31/2026 $165,313 $13,776 15.00%
4/1/2026 - 3/31/2027 $165,313 $13,776 -
THE OFFERING 4/1/2027 - 3/31/2028 $165,313 $13,776 -
Purchase Price $2,738,095 4/1/2028 - 3/31/2029 $165,313 $13,776 -
CAP Rate 5.25% 4/1/2029 - 3/31/2030 $165,313 $13,776 -
Annual Rent $143,750 4/1/2030 - 3/31/2031 $190,109 $15,842 15.00%
4/1/2031 - 3/31/2032 $193,911 $16,159 -
LEASE SUMMARY 4/1/2032 - 3/31/2033 $197,789 $16,482 -
Property Name Applegreen 4/1/2033 - 3/31/2034 $201,745 $16,812 -
Property Type Net Leased Gas Station / C-Store 4/1/2034 - 3/31/2035 $205,780 $17,148 -
Option 1 $218,626 $18,219 15.00%
Tenant / Guarantor Petrogas Group US, Inc.
Option 2 $251,420 $20,952 15.00%
Original Lease Term 20 Years
Lease Commencement April 1, 2015 INVESTMENT SUMMARY
Lease Expiration March 31, 2035 Marcus & Millichap is pleased to present the exclusive listing for Applegreen located at
Lease Term Remaining 14.2 Years 540 Islip Avenue in Islip, New York. The site consists of roughly 1,700 rentable square
feet of building space on an estimated 0.43-acre parcel of land. The investment
Lease Type Triple Net (NNN)
opportunity is subject to a 20-year, triple net (NNN) lease, which commenced on April
Roof & Structure Tenant Responsible 1st, 2015. The lease has two (2), five (5)-year tenant renewal options and rental
Rental Increases 15% Every Five (5) Years increases of fifteen percent (15%) every 5 years throughout the initial term and each
option.
Options to Renew Two (2), Five (5)-Year Option Periods
Applegreen – Islip, NY 5
Depreciation Benefits- Example
Analysis
Bonus Deprecation- 100% Year One Accelerated Depreciation- Fifteen Year
Assumptions Assumptions
Asset Type Service Station Asset Type Service Station
Ownership Fee Simple Ownership Fee Simple
Rent $143,750 Rent $143,750
Cap Rate 5.25% Cap Rate 5.25%
Purchase Price $2,738,095 Purchase Price $2,738,095
Land Allocation 20.00% Land Allocation 20.00%
Total Depreciable Basis for Improvements $2,190,476 Total Depreciable Basis for Improvements $2,190,476
Depreciation Schedule 1 Year Depreciation Schedule 15 Year
Federal Tax Rate 37.00% Federal Tax Rate 37.00%
Year 1 Depreciation $2,190,476 Year 1 Depreciation $146,031
Potential Year 1 Tax Savings $810,476 Potential Year 1 Tax Savings $54,031
Standard Depreciation Ground Lease
Assumptions Assumptions
Asset Type Service Station Asset Type Service Station
Ownership Fee Simple Ownership Fee Simple
Rent $143,750 Rent $143,750
Cap Rate 5.25% Cap Rate 5.25%
Purchase Price $2,738,095 Purchase Price $2,738,095
Land Allocation 20.00% Land Allocation 20.00%
Total Depreciable Basis for Improvements $2,190,476 Total Depreciable Basis for Improvements $0
Depreciation Schedule 39 Year Depreciation Schedule 0
Federal Tax Rate 37.00% Federal Tax Rate 37.00%
Year 1 Depreciation $56,166 Year 1 Depreciation $0
Potential Year 1 Tax Savings $20,781 Potential Year 1 Tax Savings $0
*We encourage all prospective purchasers to confirm with their accountant
Applegreen – Islip, NY 6
Tenant & Guarantor Overview – Applegreen &
Petrogas, LTD
LOCATIONS
ABOUT APPLEGREEN
In 1992, Applegreen started with the opening of their first service station in 191 Locations
Ballyfermot, West Dublin. From there, under the stewardship of CEO Bob Throughout
Etchingham and COO Joe Barrett, Applegreen expanded in Ireland, growing the USA
year on year. Over the last 25 years, their brand reputation and success has
been earned through quality retail and value offerings, including our ‘low fuel
prices, always’ promise and their 100% traceable and quality assured fuel
Applegreen is a convenience food and beverage retailer and operator of petrol
forecourts and motorway service areas with a major presence in the Republic
of Ireland, the United Kingdom and the USA. The Group has 556 sites as of
December 2019, across the Republic of Ireland (202 sites), United Kingdom
(163 sites) and United States (191 sites) and has 11,000 employees. The Group
is focused on acquiring and developing new Service Area and Petrol Filling
Station sites in each of the three markets in which it operates.
COMPANY TYPE
Public (LON: APGN)
#1: Highway Service Area Operator in the Republic of
Ireland (46 Sites) (31 Sites)
EMPLOYEES
11,000
#2: Highway Service Area operator in the United Kingdom
NUMBER OF STORES AWARDS
556 Worldwide
•Retail Excellence Award for Company of the Year
Industry Leader 2012
FOUNDED
1992
•Envirocom Awards for Engaging Communities 2011
(48 Sites) (43 Sites)
HEADQUARTERS •NACS International Convenience Retailer of the
Dublin, Ireland Year Award 2010
Applegreen – Islip, NY 7
Tenant & Guarantor Overview – Applegreen &
Petrogas, LTD
TIMELINE
BRAND PARTNERS
Applegreen – Islip, NY 8
Tenant & Guarantor Overview – Applegreen &
Petrogas, LTD
GROWTH
Applegreen – Islip, NY 9
Tenant & Guarantor Overview – Applegreen &
Petrogas, LTD
IN THE PRESS
2020 2019
09/22/20
09/18/20
“We are pleased to continue to expand our relationship
with Applegreen. They are strong world-class operators,
and we expect that they will have a positive impact
operating these sites in the Upper Midwest,” - Gerardo
Valencia, CEO and president of CrossAmerica.
06/18/20
Applegreen – Islip, NY 10Tenant & Guarantor Overview – Blackstone Acquisition
Comments
- 12/22/20 Daniel Kitchen, Chairman of Applegreen, said:
“Over recent years, Applegreen has expanded operations to develop an
enviable position as a leading roadside convenience retailer across Ireland,
the UK and the US, combining a unique customer proposition with an
effective business model to increase resilient non-fuel revenues.”
Sebastien Sherman, Senior Managing Director, Blackstone
Infrastructure Partners, said:
“We are honored to partner with Applegreen’s visionary Founders, Bob
Etchingham and Joe Barrett, to continue to build Applegreen’s industry-
leading portfolio of roadside retail outlets in Europe and the United States.
We look forward to supporting Applegreen as its team continues to
About Blackstone Infrastructure Partners innovate and expand internationally.”
Blackstone Infrastructure is an active investor across energy, transportation,
communications and water and waste infrastructure sectors. Blackstone
Infrastructure seeks to apply a long-term buy-and-hold strategy to large-scale
infrastructure assets with a focus on delivering stable, long-term capital
appreciation together with a predictable annual cash flow yield. Blackstone
Infrastructure’s approach to infrastructure investing is one that puts a focus on
responsible stewardship and stakeholder engagement to create value not just for
their investors but also for the communities they serve.
Applegreen – Islip, NY 11Surrounding Area
Property Address: 540 Islip Ave - Islip, New York 11751
Applegreen – Islip, NY 12Property Photos
Applegreen – Islip, NY
13Property Photos – Surrounding Area Applegreen – Islip, NY 14
Location Overview
Property Address: 540 Islip Ave - Islip, New York 11751
This Applegreen gas station is situated on Islip Avenue, which directly merges with
Southern Highway and Southern State Parkway. Southern Highway boasts average
daily traffic counts exceeding 91,200 vehicles, respectively. Southern State Parkway
brings an additional 51,900 vehicles into the area daily. There are more than 124,000
individuals residing within a three-mile radius of the property and more than 234,000
individuals within a five-mile radius. This subject property is situated in an affluent
suburban community with an average household income of over $119,000 within a
one-mile radius. ADTC: 51,900
The subject property benefits from being well-positioned in a dense urban infill
consisting of national and local tenants, academic institutions, and malls all within
close proximity of this property. Major national tenants in the area include: The Home
Depot, Target, Best Buy, Kohl’s, Aldi, Shop Rite, Marshalls, Stop & Shop, Staples, as well
as many others. The subject property is also located just minutes from the Westfield
South Shore Mall with over 1,165,000 square feet and nearly 100 stores. Big box stores
include Macy’s, Lord and Taylor, JCPenney, Ulta Beauty, Burlington, Men’s Warehouse,
among money others. The New York Institute of Technology is also located less than a half-
mile away with a total enrollment exceeds 8,300 students. The subject property is also
located less than an hour east of New York City.
Islip, located on the South Shore of Long Island, is one of ten towns in Suffolk County,
New York. Early on, tourism brought much wealth into the area and business sprung
up to service the hotels that began to dot the landscape. Some of those tourists stayed
on and built summer homes, thus the vacationers and the town seemed to enjoy a
mutual prosperity. Diesel-powered ferries replaced the whale boats while housing ADTC: 16,700
developments and small manufacturing firms sprang up on the sites of old farms. Now,
large corporations located in the area are CA Technologies which is based in Islandia,
as well as NBTY and Sigma Corporation, both based in Ronkonkoma. Long Island
MacArthur Airport and the New York Air Route Traffic Control Center are both located
in Islip. The Long Island Rail Road's Montauk Branch is one of two lines running
through the town spanning between the Village of Babylon and the Hamlet of Blue
Point in the Town of Brookhaven, with stations from Bay Shore through Sayville. The
other line is the Main Line which runs through the northern part of the town with
stations in Brentwood, Central Islip and Ronkonkoma, which not only serves as a major
transportation hub, but is also located on the Islip-Brookhaven Town Line. Islip
currently has roughly 4,200 acres of land zoned for industrial uses. This acreage
includes the 52-acre Foreign Trade Zone and a site exclusively for duty free importing
firms.
Applegreen – Islip, NY 15Local Map
Property Address: 540 Islip Ave - Islip, New York 11751
LaGuardia Airport (LGA)
Newark Liberty International Airport (EWR)
John F. Kennedy International Airport (JFK)
Applegreen – Islip, NY 16Regional Map
Property Address: 540 Islip Ave - Islip, New York 11751
NEW YORK
Applegreen – Islip, NY 17Demographics
Property Address: 540 Islip Ave - Islip, New York 11751
1 Mile 3 Miles 5 Miles
POPULATION
5 Miles 2025 Projection 13,741 124,843 235,241
2020 Estimate 13,678 124,132 233,942
2010 Census 13,719 123,744 233,553
2000 Census 13,312 117,015 219,277
3 Miles INCOME
Average $119,069 $113,385 $118,346
Median $97,809 $87,221 $89,001
Per Capita $34,023 $33,150 $35,111
1 Mile HOUSEHOLDS
2025 Projection 3,942 36,647 69,925
2020 Estimate 3,906 36,175 69,102
2010 Census 3,864 35,557 68,047
2000 Census 3,780 33,841 64,653
HOUSING
2020 $390,854 $383,724 $397,416
EMPLOYMENT
2020 Daytime Population 6,980 95,833 222,009
2020 Unemployment 3.68% 4.73% 4.72%
2020 Median Time Traveled 32 Mins 31 Mins 31 Mins
RACE & ETHNICITY
White 69.26% 56.23% 59.15%
Native American 0.02% 0.05% 0.04%
African American 10.02% 15.78% 14.16%
Asian/Pacific Islander 1.97% 2.88% 3.45%
Applegreen – Islip, NY 18Market Overview
New York City
Jackson,
New York City, MS
New York With an estimated 2017 population of 8,622,698 distributed over a land area
of about 302.6 square miles, New York City is the most densely populated
major city in the United States. Located at the southern tip of the state of New
York, the city is the center of the New York metropolitan area, the largest
metropolitan area in the world by urban landmass and one of the world's most
populous megacities. A global power city, New York City has been described as
the cultural, financial, and media capital of the world, and exerts a significant
impact upon commerce, entertainment, research, technology, education,
politics, tourism, and sports. Home to the headquarters of the United Nations,
New York is an important center for international diplomacy. Situated on one
of the world's largest natural harbors, New York City consists of five boroughs,
each of which is a separate county of the State of New York. The five boroughs
– Brooklyn, Queens, Manhattan, The Bronx, and Staten Island – were
consolidated into a single city in 1898. As many as 800 languages are spoken in
New York, making it the most linguistically diverse city in the world.
Many districts and landmarks in New York City are well known, and the city
received a record 62.8 million tourists in 2017. Several sources have ranked
New York the most photographed city in the world. Times Square, iconic as the
world's "heart” and its "Crossroads", is the brightly illuminated hub of the
Broadway Theater District, one of the world's busiest pedestrian intersections,
and a major center of the world's entertainment industry. Anchored by Wall
Street in the Financial District of Lower Manhattan, New York City has been
called both the most economically powerful city and the leading financial
center of the world, and the city is home to the world's two largest stock
exchanges by total market capitalization, the New York Stock Exchange and
NASDAQ. Providing continuous 24/7 service, the New York City Subway is one
of the most extensive metro systems worldwide, with 472 stations in
operation. Over 120 colleges and universities are located in New York City,
including Columbia University, New York University, and Rockefeller University,
which have been ranked among the top universities in the world.
Applegreen – Islip, NY 19E XC LU S I V E N E T L E A S E O F F E R I N G NY BROKER OF RECORD: John Krueger Marcus & Millichap Lic.# 10311205789
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