SUBJECT PROPERTY EXCLUSIVE OFFERING | $4,000,000 - 6.50% CAP HARBOR FREIGHT TOOLS-CORPORATE Net LEASE
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SUBJECT PROPERTY
EXCLUSIVE OFFERING | $4,000,000 – 6.50% CAP
HARBOR FREIGHT TOOLS– CORPORATE Net LEASE
1756 north rd se, warren, oh MATTHEW SCOW JOE CAPUTO
214.675.0175 mscow@trivanta.com joe@trivanta.com
Table of contents
HARBOR FREIGHT TOOLS
1756 north rd se, warren, oh
PAGE 2: TABLE OF CONTENTS
PAGE 3: INVESTMENT | TENANT | LEASE OVERVIEW
PAGE 4: TENANT OVERVIEW CONTINUED
PAGE 5: PROPERTY PHOTOS
PAGE 6: SITE PLAN
PAGE 7-10: AERIAL PHOTOS
PAGE 11-12: LOCATION OVERVIEW
PAGE 13-14: LOCATION MAPS
PAGE 15: DEMOGRAPHICS
PAGE 16: DISCLAIMER
REPRESENTATIVE PHOTO
2
Investment overview
HARBOR FREIGHT TOOLS
1756 north rd se, warren, oh
Lease overview
PRICE | CAP RATE: $4,000,000 | 6.50%
Lease Term: Approx. 11 Years Remaining
Plus Four, 5-Year Options to Extend
NET OPERATING INCOME: $259,953
Lease Expiration: May 2029
BUILDING AREA: 18,204+ Square Feet
Lease Type: Corporate – Net Lease
LAND AREA: 2.10+ Acres
YEAR RENOVATED: 2016
BASE Rent Increases:
Annual Base Rent Yrs 1-6: $259,953 (6/1/18)
LANDLORD RESPONSIBILITY: Roof & Structure
Annual Base Rent Yrs 7-11: $291,082 (12% ↑)
OWNERSHIP: Fee Simple Interest
Option 1 | Yrs 12-16: $320,208 (10% ↑)
OCCUPANCY: 100%
Option 2 | Yrs 17-21: $352,247 (10% ↑)
Option 3 | Yrs 22-26: $387,563 (10% ↑)
Option 4 | Yrs 27-31: $426,338 (10% ↑)
Tenant overview
LESSEE: Harbor Freight Tools USA, Inc.
HARBOR FREIGHT TOOLS | www.harborfreight.com | Moody’s Ba3
Harbor Freight Tools (HFT) is a privately held discount tool and equipment retailer headquartered in Calabasas, California. Started as a small family
business in 1977, the company currently sells its products in 850+ retail stores in 47 states and on its website, and employs approximately 20,000 people.
Vertical integration is HFT’s key competitive advantage as house brands sourced directly from manufacturers represent the vast majority of its sales.
From hand tools and generators to air and power tools, from shop equipment to automotive tools, HFT offers more thanSUBJECT PROPERTY
5,000 tools and accessories at
quality levels that match or exceed competing brands, but at prices that are as much as 80% less. PRIOR TO PANDA EXPRESS EXPANSION
Currently, HFT holds a credit rating of Ba3/stable from Moody’s. HFT has revenues in excess of $4.0 billion and serves 40+ million customers. HFT is
expanding at a rate of over 100 stores per year, funded through operations, and supplies its stores through two strategically located distribution centers in
California and South Carolina totaling over 4 million square feet of space.
3
Tenant Overview Continued
HARBOR FREIGHT TOOLS
1756 north rd se, warren, oh
Tenant Highlights:
Largest Discount Tool Retailer in the USA
40+ Year Operating History
850+ Stores and Growing
National Credit Tenant: Moody’s (Ba3/Stable)
Annual Revenues: $4.0 Billion +
Retail Presence in 47 states
Over 40+ Million Customers Served
Employs Approximately 20,000 People
4
Property Photos
HARBOR FREIGHT TOOLS
1756 north rd se, warren, oh
5
Site Plan
HARBOR FREIGHT TOOLS
1756 north rd se, warren, oh
6
Aerial photo
HARBOR FREIGHT TOOLS
1756 north rd se, warren, oh
Eastwood Mall
Complex
(3.3 mil SF)
Niles Plaza
Shopping
Alorica Niles
Center
7
Aerial photo
HARBOR FREIGHT TOOLS
1756 north rd se, warren, oh
Eastview Apartment
Building
Café 422
Hair Depot
Plus
8
Aerial photo
HARBOR FREIGHT TOOLS
1756 north rd se, warren, oh
Niles Cortland Rd. (27,000 VPD)
Eastwood Mall
Complex
(3.3 mil SF)
9
Aerial photo
HARBOR FREIGHT TOOLS
1756 north rd se, warren, oh
Pinview
North Rd. (12,000 VPD)
Memorial Park
Agree Auto
Sales, Inc.
PROPERTY LINE Alorica Niles
APPROXIMATED
Niles Plaza
Shopping
Center
10Location overview
HARBOR FREIGHT TOOLS
1756 north rd se, warren, oh
Click Here for Property Video:
WARREN, OH
IMMEDIATE TRADE AREA
Harbor Freight Tools is strategically situated along North Rd. (12,000 VPD), near its intersection with Youngstown Warren Rd. (18,000 VPD) in Warren, OH.
Youngstown Warren Rd. is the main retail corridor in the area that features one of the large shopping complexes in the US, Eastwood Mall Complex (3.3 mil SF). North
Rd. is a local north-south thoroughfare that serves the immediate trade area and surrounding neighborhoods. Warren is located approximately 50 miles southeast of
Cleveland, OH and 15 miles northwest of Youngstown, OH.
The traffic volumes, growth, population density, and accessibility of the immediate trade area have attracted numerous nationally known retail brands to the trade area.
Notable national credit tenants include Dillard’s, Macy’s, JC Penney, Sears, Kohl’s, Target, Pier 1 Imports, Home Depot, Dick’s, ALDI, CVS, Walgreens, O’Reilly,
AutoZone, Buffalo Wild Wings, Outback Steakhouse, Applebee’s, Five guys, Chipotle, Starbucks, Chick-fil-A, McDonald’s, Wendy’s, Arby’s, Subway, and many more.
WARREN, OH
Warren is located in Northeast Ohio, 50 miles southeast of Cleveland and 15 miles northwest of Youngstown. The City of Warren occupies 16 square miles and is home
to a population of over 41,000 residents. The largest city in Trumbull County, Warren is the 22nd largest city in Ohio and a central component of the Youngstown-
Warren-Boardman Metropolitan Statistical Area (MSA). The City of Warren is situated within 500 miles of 50 percent of the United States population and over 60
percent of national purchasing income, including 10 of the top 25 US metropolitan markets. 11Location overview
HARBOR FREIGHT TOOLS
1756 north rd se, warren, oh
YOUNGSTOWN, OH
YOUNGSTOWN, OH
Youngstown is a city in Mahoning County, Ohio. It is part of the Youngstown-Warren-Boardman, OH-PA Metropolitan Statistical Area (MSA). Located on the Mahoning
River, Youngstown is approximately 65 miles southeast of Cleveland and 61 miles northwest of Pittsburgh. Despite having its own media market, Youngstown is often
included in commercial and cultural depictions of both northeast Ohio as well as the Pittsburgh Tri- State Area due to these proximities. Youngstown lies 10 miles west of
the Pennsylvania state line, midway between New York City and Chicago via Interstate 80.
Some of the prominent companies with facilities in the Youngstown region include Delphi, WCI Steel Plant, Packard Electric Systems, Exal Corporation and V&M Star
Steel Company. A nearby General Motors plant is the region’s largest industrial employer. In addition, Youngstown is home to the headquarters of Turning
Technologies, a prominent software company.
Youngstown is the site of several steel and metalworking operations, but the largest employer in the city is Youngstown State University (YSU), an urban public campus
just north of downtown that serves about 15,000 students. Youngstown's downtown, which once underscored the community's economic difficulties, is a site of new
business growth.
The metro boasts a diverse employment base driven by the education, healthcare and manufacturing sectors. Other major employers represent a variety of industries
and include Joseph Company International, which is currently constructing a beverage and technology complex in Youngstown that will produce the world’s first self-
chilling beverage. Canadian-based manufacturer Matalco recently opened an aluminum re-melt factory in the nearby Village of Lordstown. The Lordstown Energy
Center is building a $900 million facility that will produce energy for roughly 800,000 homes beginning in 2018. 12Location map
HARBOR FREIGHT TOOLS
1756 north rd se, warren, oh
13Location map
HARBOR FREIGHT TOOLS
1756 north rd se, warren, oh
14Demographics
HARBOR FREIGHT TOOLS
1756 north rd se, warren, oh
1756 North Rd SE 1756 North Rd SE
1 mi radius 3 mi radius 5 mi radius 1 mi radius 3 mi radius 5 mi radius
Warren, OH 44484 Warren, OH 44484
2017 Estimated Population 5,509 44,232 82,449 2017 Est. Labor Population Age 16 Years or Over 4,608 36,624 67,728
POPULATION
LABOR FORCE
2022 Projected Population 5,251 42,828 81,141 2017 Est. Civilian Employed 52.1% 52.1% 50.3%
2010 Census Population 5,764 46,472 86,456 2017 Est. Civilian Unemployed 4.9% 4.1% 4.2%
2000 Census Population 6,104 50,556 95,567 2017 Est. in Armed Forces - - -
Projected Annual Growth 2017 to 2022 -0.9% -0.6% -0.3% 2017 Est. not in Labor Force 43.1% 43.8% 45.5%
Historical Annual Growth 2000 to 2017 -0.6% -0.7% -0.8% 2017 Labor Force Males 46.7% 47.2% 47.4%
2017 Labor Force Females 53.3% 52.8% 52.6%
2017 Estimated Households 2,650 19,924 36,050
HOUSEHOLDS
2022 Projected Households 2,644 20,182 37,147 2010 Occupation: Population Age 16 Years or Over 2,401 19,075 34,101
2010 Census Households 2,675 20,294 36,746 2010 Mgmt, Business, & Financial Operations 5.7% 8.9% 9.6%
2000 Census Households 2,786 21,211 39,068 2010 Professional, Related 15.7% 16.5% 14.9%
OCCUPATION
Projected Annual Growth 2017 to 2022 - 0.3% 0.6% 2010 Service 16.3% 20.2% 21.8%
Historical Annual Growth 2000 to 2017 -0.3% -0.4% -0.5% 2010 Sales, Office 30.5% 24.6% 23.8%
2010 Farming, Fishing, Forestry - 0.2% 0.2%
2017 Est. Population Under 10 Years 10.5% 10.6% 10.9% 2010 Construction, Extraction, Maintenance 4.8% 6.6% 6.8%
2017 Est. Population 10 to 19 Years 9.7% 11.2% 11.8% 2010 Production, Transport, Material Moving 27.1% 23.0% 23.0%
2017 Est. Population 20 to 29 Years 14.1% 12.8% 12.7%
2010 White Collar Workers 51.8% 50.0% 48.3%
AGE
2017 Est. Population 30 to 44 Years 16.2% 16.5% 16.4%
2010 Blue Collar Workers 48.2% 50.0% 51.7%
2017 Est. Population 45 to 59 Years 19.6% 20.0% 20.2%
TRANSPORTATION
2017 Est. Population 60 to 74 Years 21.0% 19.1% 18.4% 2010 Drive to Work Alone 91.7% 89.8% 89.8%
2017 Est. Population 75 Years or Over 8.8% 9.9% 9.6% 2010 Drive to Work in Carpool 4.8% 6.0% 5.9%
TO WORK
2017 Est. Median Age 43.2 43.0 42.2 2010 Travel to Work by Public Transportation 0.1% 0.3% 0.3%
2010 Drive to Work on Motorcycle - - -
MARITAL STATUS
2017 Est. Male Population 47.3% 47.9% 48.1%
2010 Walk or Bicycle to Work 1.0% 1.4% 1.5%
& GENDER
2017 Est. Female Population 52.7% 52.1% 51.9%
2010 Other Means 0.9% 0.4% 0.3%
2017 Est. Never Married 31.7% 29.2% 30.9% 2010 Work at Home 1.4% 2.1% 2.1%
2017 Est. Now Married 41.2% 41.9% 40.9%
TRAVEL TIME
2017 Est. Separated or Divorced 17.6% 20.4% 19.6% 2010 Travel to Work in 14 Minutes or Less 54.9% 48.5% 42.5%
2017 Est. Widowed 9.5% 8.5% 8.5% 2010 Travel to Work in 15 to 29 Minutes 34.1% 35.9% 37.4%
2010 Travel to Work in 30 to 59 Minutes 10.7% 12.6% 13.1%
2017 Est. HH Income $200,000 or More 1.8% 2.2% 2.2% 2010 Travel to Work in 60 Minutes or More 2.3% 3.8% 3.9%
2017 Est. HH Income $150,000 to $199,999 1.0% 2.3% 2.4% 2010 Average Travel Time to Work 14.2 15.0 15.9
2017 Est. HH Income $100,000 to $149,999 7.9% 9.1% 9.1%
2017 Est. HH Income $75,000 to $99,999 8.5% 10.7% 10.0% 2017 Est. Total Household Expenditure $124 M $1.03 B $1.81 B
CONSUMER EXPENDITURE
2017 Est. HH Income $50,000 to $74,999 18.7% 19.8% 18.0% 2017 Est. Apparel $4.27 M $35.6 M $62.5 M
INCOME
2017 Est. HH Income $35,000 to $49,999 20.3% 16.6% 16.1% 2017 Est. Contributions, Gifts $7.62 M $65.6 M $115 M
2017 Est. HH Income $25,000 to $34,999 10.5% 11.3% 11.4% 2017 Est. Education, Reading $4.31 M $36.7 M $65.0 M
2017 Est. HH Income $15,000 to $24,999 12.1% 12.8% 13.5% 2017 Est. Entertainment $6.79 M $57.0 M $100 M
2017 Est. HH Income Under $15,000 19.2% 15.3% 17.4% 2017 Est. Food, Beverages, Tobacco $19.6 M $161 M $283 M
2017 Est. Average Household Income $55,507 $65,083 $62,367 2017 Est. Furnishings, Equipment $4.04 M $34.3 M $60.1 M
2017 Est. Median Household Income $41,131 $46,661 $44,840 2017 Est. Health Care, Insurance $11.4 M $93.5 M $164 M
2017 Est. Per Capita Income $26,704 $29,500 $27,530 2017 Est. Household Operations, Shelter, Utilities $38.7 M $321 M $563 M
2017 Est. Miscellaneous Expenses $1.89 M $15.6 M $27.3 M
2017 Est. Total Businesses 386 2,198 3,784 2017 Est. Personal Care $1.62 M $13.4 M $23.5 M
2017 Est. Total Employees 6,523 27,322 46,478 2017 Est. Transportation $23.8 M $198 M $346 M
15Disclaimer
HARBOR FREIGHT TOOLS
1756 north rd se, warren, oh
Disclaimer
Trivanta (“Agent”) has been engaged as an agent for the sale of the property located at 1756 North Rd.,
SE, Warren, OH (“Property”) by the owner of the Property (“Seller”). The Property is being offered for
sale in an “as-is, where-is” condition and Seller and Agent make no representations or warranties as to
the accuracy of the information contained in this Offering Memorandum. The enclosed materials include
highly confidential information and are being furnished solely for the purpose of review by prospective
purchasers of the interest described herein. The enclosed materials are being provided solely to facilitate
the prospective investor’s own due diligence for which it shall be fully and solely responsible. The material
contained herein is based on information and sources deemed to be reliable, but no representation or
warranty, express or implied, is being made by Agent or Seller or any of their respective representatives,
affiliates, officers, employees, shareholders, partners and directors, as to the accuracy or completeness
of the information contained herein. Summaries contained herein of any legal or other documents are not
intended to be comprehensive statements of the terms of such documents, but rather only outlines of
some of the principal provisions contained therein. Neither the Agent nor the Seller shall have any liability
whatsoever for the accuracy or completeness of the information contained herein or any other written or
oral communication or information transmitted or made available or any action taken or decision made by
the recipient with respect to the Property. Interested parties are to make their own investigations,
projections and conclusions without reliance upon the material contained herein. Seller reserves the
right, at its sole and absolute discretion, to withdraw the Property from being marketed for sale at any
time and for any reason or no reason. Seller and Agent each expressly reserves the right, at their sole
and absolute discretion, to reject any and all expressions of interest or offers regarding the Property
and/or to terminate discussions with any entity at any time, with or without notice. This offering is made
subject to omissions, correction of errors, change of price or other terms, prior sale or withdrawal from the
market without notice. Agent is not authorized to make any representations or agreements on behalf of
Seller. Seller shall have no legal commitment or obligation to any interested party reviewing the enclosed
materials, performing additional investigation and/or making an offer to purchase the Property unless and
until a binding written agreement for the purchase of the Property has been fully executed, delivered, and
approved by Seller (it being expressly understood and agreed that any such commitment and obligation
of Seller shall in any and all events be limited to that which is expressly set forth in any such fully
executed, delivered, approved and binding written agreement, executed by Seller and all other parties
thereto, for the purchase of the Property) and any conditions to Seller’s obligations hereunder, and
thereunder have been satisfied or waived. By taking possession of and reviewing the information
contained herein, the recipient agrees that (a) the enclosed materials and their contents are of a highly
confidential nature and will be held and treated in the strictest confidence and shall be returned to Agent
or Seller promptly upon request; and (b) the recipient shall not contact employees or tenants of the
Property directly or indirectly regarding any aspect of the enclosed materials or the Property without the
prior written approval of the Seller and Agent; and (c) no portion of the enclosed materials may be copied
or otherwise reproduced without the prior written authorization of Seller and Agent. By accepting this
Offering Memorandum and/or otherwise engaging in the receipt, review and/or use of the Offering
Memorandum and the contents hereof, and/or contents not contained therein, you hereby release Agent
and Seller, and their respective agents, employees, contractors, affiliates, shareholders, partners,
members and/or successors and assigns (collectively, the “Released and Indemnified Parties”) from any
and all loss, cost, expense, or liability of any kind or nature whatsoever; and you hereby further agree to
hold harmless and defend the Released Parties from any and all loss, cost, expense, or liability of any
kind or nature whatsoever, arising out of and/or in connection with, your receipt, review and/or other use
of this Offering Memorandum.
Listed in association with OHIO broker of record: Terra national real estate group
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