Post on 10-Jul-2020
Representative Photo or Actual Site
OFFERING MEMORANDUM
Jonathan W Hipp, President & CEO703.787.4725 | jhipp@calkain.com
GROUND LEASE NNN ROYAL FARMS Elkridge (Jessup), MD
Under Construction
Asset Summary
Net Operating Income (NOI) $210,000
Rent/Month $17,500
Rent/SF $71.43
Rentable Square Feet 2,940+/- SF
Land Area 1.75+/- Acres
Tenant Royal Farms
Website royalfarms.com
Guarantor Corporate
Ownership Type Ground Lease/Fee Simple
Lease Type NNN
Landlord Responsibilities None
Store Opening July 1, 2019
Lease Term Remaining 20 Years
Rent Commencement July 1, 2019
Lease Expiration July 1, 2039
Increases 10% Every 5 Years Including Options
Options Four (4), Five (5) Year
Investment Highlights
• Brand new construction
• 1,057 new apartment units being developed across the street at Ryan Homes at Howard Square
• Long 20-year lease term with four, 5-year options to renew
• 10% increases every 5 years including options
• Signalized hard corner intersection
• Frontage along busy US Route 1 (30,000 VPD), adjacent to a new CVS
• 8 miles from Columbia, MD
• Rapidly growing affluent population (183,347 people within 5 mile radius)
Rent ScheduleTerm Increases Annual Rent Monthly Rent
Years 1-5 - $210,000.00 $17,500.00
Years 6-10 10% $231,000.00 $19,250.00
Years 11-15 10% $254,100.00 $21,175.00
Years 16-20 10% $279,510.00 $23,292.50
Years 21-25 (Option 1) 10% $307,461.00 $25,621.75
Years 26-30 (Option 2) 10% $338,207.10 $28,183.93
Years 31-35 (Option 3) 10% $372,027.81 $31,002.32
Years 36-40 (Option 4) 10% $409,230.59 $34,102.55
7136 Montevideo RdElkridge, MD 21075
Asking Price$4,285,714
Cap Rate 4.90%
Calkain Companies | 2
Royal Farm | Financial Summary
About Royal FarmsRoyal Farms opened its first store in 1959 in Baltimore, which remains the company’s headquarters. As of November 2018, Royal Farms has 205 locations throughout the Mid-Atlantic states. More than 100 are in the home state of Maryland. The chain sells many typical, convenience store items such as coffee, candy, soft drinks, bagels and donuts, lotto tickets, and other basic groceries. All locations also offer a kitchen serving hot food items such as chicken, Western Fries, along with sandwiches. Their current slogan is “Real Fresh. Real Fast. Real Green.” Royal Farms’ major competitors include Wawa, Sheetz, Rutter’s, High’s, and 7-Eleven.
Since 1959, they’ve been satisfying the Mid-Atlantic area’s hunger for real fresh food served real fast! Royal Farms is your go-to place day or night for breakfast, lunch, snacks, dinner, gasoline and diesel fuel, and all the things you need!
Tenant SnapshotTenant Snapshot
# of Locations
205
Founded
1959
# of Employees
1,000
Region
Mid-Atlantic
Headquarters
Baltimore, MD
Calkain Companies | 3
Tenant Overview
95
270
95
97
895Baltimore, MD
14 miles
Columbia, MD8 miles
Gaithersburg, MD
32 miles
Jessup, MD2 miles
Bethesda, MD
25 miles
Washington, DC28 miles
Subject Site
Columbia, MD
Gaithersburg, MD Jessup, MD
Baltimore, MD
Washington, DC
Alexandria, VA
Bethesda, MDDulles, VA
Calkain Companies | 4
Location Overview
Distance To
Washingto
n Blvd 30
,000 V
PD
197,00
0 VPD
Troy Hill Business Park
1
Columbia East Marketplace
Columbia CrossingDobbin Center
Snowden Square
Arundel Mills
Gateway Outlook
Keep all map content (except background) above this margin for website cropping purposes
7136 Montevideo Rd | Elkridge, MD 21075
Subject Site
95
Subject Site
Dorset Gardens at Blue Stream
Luxury Garage TownhomesModel Home
InteriorsAlarm Line Mr
Tire HQ
Maryland StatePolice
Howard County Department of
Corrections
Soccer Dome
Elite Spice
Village Towns
Chateau Communities
Washington Blvd 30,000 VPD
Port Capital Dr
Montevideo Rd
1
1
Columbia East Marketplace
1057 Apartment Units
Keep all map content (except background) above this margin for website cropping purposes
7136 Montevideo Rd | Elkridge, MD 21075
Subject Site
Location Highlights
Signalized Corner Location
30,000 VPD Pass the Site
Brand New Construction
Washington Blvd 30,000 VPD
Calkain Companies | 7
Site Plan
Surrounding Retail
Calkain Companies | 8
Calkain Companies | 9
Site Rendering
Jessup
Elkridge
1 Mile 3 Miles 5 MilesPopulation2018 Population 9,449 62,493 183,347
2023 Population 11,271 69,326 198,798
2018 Median Age 32.7 36.2 36.2
Households2018 Total Households 3,087 21,449 65,052
2023 Total Households 3,663 23,832 70,415
Median Household Income2018 Median HH Income $107,222 $105,448 $104,117
2023 Median HH Income $120,627 $114,524 $113,061
Average Household Income2018 Average HH Income $129,492 $123,103 $123,471
2023 Average HH Income $153,825 $141,777 $141,739
Location Overview, 1/3/5 Miles
95
95
1 Mile
3 Mile
5 Mile
Jessup, MDJessup is an unincorporated town and census-designated place in Howard County, Maryland and Anne Arundel County, Maryland. Jessup’s population is 8,392 people. Since 2000, it has had a population growth of 6.70%.
Jessup is a town of sales and office workers, managers and professionals. There are especially a lot of people living in Jessup who work in sales jobs (20.91%), business and financial occupations (12.80%) and office and administrative support (10.65%).
Also of interest is that Jessup has more people living here who work in computers and math than 95% of the places in the US.
Jessup contains many warehouse delivery facilities. Due to its geographically central location in the state, Jessup is also home to the Maryland Food Center, which includes the Maryland Produce Market and the Maryland Seafood Market.
The major highways that run through Jessup are Interstate 95, U.S. Route 1 and Maryland Route 175. Exit 41 off I-95 provides access via MD 175 east.
Calkain Companies | 10
About UsCalkain Companies LLC is a boutique commercial real estate investment banking firm that provides consulting and brokerage services to both private and institutional clientele with a focus on single tenant net lease investments. We pride ourselves on being an innovative leader by providing our clients a full array of commercial real estate investment brokerage and asset management solutions, including advisory, research, debt and equity placement and wealth management.
Calkain has built solid, lasting relationships that have been the cornerstone of how we do business. Calkain approaches each assignment with an eye toward each client’s individual needs. Whether private or institutional investors, Calkain delivers real estate solutions that maximize value while building wealth for all of our clients.
At Calkain, our foresight and innovation are leading the net lease investment industry.
To learn more about how to build a solid foundation for your investment portfolio, visit calkain.com or call us at:
Disclaimer: The information contained in this document is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Calkain and its subsidiaries, and should not be made available to any other person or entity without the written consent of Calkain. This document has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property(s). The information contained herein is not a substitute for a thorough due diligence investigation. Calkain and its subsidiaries have not made any investigation, and make no warranty or representation, with respect to the income or expenses for the subject property(s), the future projected financial performance of the property, the size and square footage of the property(s) 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(s). The information contained in this document has been obtained from sources we believe to be reliable; however neither Calkain and its subsidiaries nor the Seller have verified, and will not verify, any of the information contained herein, nor has Calkain and its subsidiaries or the Seller conducted any investigation regarding these matters and make 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.
$12 Billion in Closed Transactions
$400 Million
in Active Listings
Headquarters | Washington, DC 12930 Worldgate Dr, Ste 150 | Herndon, VA 703.787.4714
Atlanta
Boston
Fort Lauderdale
Nashville
New York
Philadelphia