2308 Westwood Avenue | Richmond, Virginia
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2308 Westwood Avenue | Richmond, Virginia EXECUTIVE SUMMARY
Transcript of 2308 Westwood Avenue | Richmond, Virginia
2 3 0 8 W e s t w o o d A v e n u e | R i c h m o n d , V i r g i n i a
E X E C U T I V E S U M M A RY
THE OPPORTUNITYNewmark Knight Frank (NKF), as exclusive advisor, is pleased to offer for sale the fee-simple interest in a state-of-the-art, single-tenant Topgolf entertainment venue (Topgolf Richmond, the Property) located in Richmond, Virginia.
The Property is located in Scott’s Addition, one of Richmond’s most desirable neighborhoods, with immediate access to the I-195, I-95 and I-64 freeways—providing access to nearly 1.3 million people. Home to numerous Fortune 500 companies, the Richmond market continues to thrive from both a business and demographic perspective, experiencing explosive population growth over the past decade.
Slated for an October 2019 opening, the Property is subject to a brand-new, 20-year lease and will be the latest addition to the Topgolf portfolio of world-class golf and entertainment venues. Topgolf has arguably re-energized and brought new life to the once-stagnant sport of golf, with more than 51% of its visitors reporting that they had never played the sport before. In addition, Topgolf has positioned itself as a top venue for entertainment and large-scale events—further diversifying its stability in the market.
The Property’s brand new construction, premier experiential tenancy and long-term lease structure combine to create a truly unique investment opportunity.
AT-A-GLANCETopgolf Richmond
OCTOBER 2019PROJECTED OPENING
55,467 SFPROPERTY SIZE
13.93 ACRESPARCEL SIZE
424PARKING SPACES
72HITTING BAYS
LEASE SUMMARYADDRESS 2308 Westwood Ave
Richmond, VA
GUARANTOR (CORPORATE) Topgolf International, Inc.
BASE LEASE TERM 20 Years
LEASE START November 1, 2019
LEASE STRUCTURE Absolute NNN
INVESTMENT HIGHLIGHTSBrand New Construction and Absolute Net LeaseUpon opening in fall 2019, Topgolf will commence a corporately guaranteed, 20-year lease with zero landlord obligations and four, five-year renewal options. The base rent features annual contractual escalations throughout the primary term and option periods.
State-of-the-Art Entertainment VenueWith an October 2019 open date planned, the brand-new facility features superior construction and an innovative design. The Property contains over 70, climate-controlled hitting bays, a rooftop terrace with fire pits and a stage for live performances, 200+ HDTVs, a full-service restaurant, multiple bars, and a lower-level lounge with complimentary billiards and shuffleboard games. This location will also offer miniature golf, a feature that is currently available at only three of the 55 venues worldwide. Mini golf adds
additional appeal to the venue for events including birthday parties, other celebrations, or simply a fun day with friends and family.
In addition, the facility will cater extremely well to corporate gatherings—a large revenue generator for Topgolf considering the dense daytime population in the immediate area—and is within a 10-minute drive to downtown Richmond.
Unique and Industry-Leading TenancyTopgolf has created a truly unique entertainment experience that appeals to all demographics, as evidenced by the fact that more than 50% of Topgolf visitors consider themselves to be “non-golfers.” Topgolf hosted over 17 million people during 2018—an increase of more than 4 million people, year-over-year. Capitalizing on its attractive guest demographics, Topgolf has sponsorship contracts with Coca-Cola, Lyft, Sprint and Master Card, in addition to partnering with local charities in its individual markets and communities. Topgolf has constructed and operates 51 venues in the U.S. and currently operates an additional four venues in the United Kingdom and Australia, on track to have 60 locations completed by the end of 2019. More than half of the 55 venues worldwide have been constructed in the past 10 years. The company is currently building an additional 10 venues domestically, and also plans to expand in Mexico, Canada and the United Arab Emirates.
TOPGOLF CUSTOMER GROWTH
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17 MILLIONANNUAL VENUE GUESTS, 2018
30% Y-O-Y ATTENDANCE GROWTH
Topgolf pioneered a technology to make golf more fun and inviting. It has since emerged as a global sports and entertainment community focused on connecting people in engaging and meaningful ways.
Today, Topgolf continues to blend technology and entertainment, golfers and non-golfers, children and adults—to create an experience that makes socializing a sport for everyone. No matter the occasion, Topgolf believes every great time starts with play, is fueled by food and beverage, moved by music and made possible through community. Every Topgolf venue features dozens of high-tech, climate-controlled hitting bays for year-round comfort, a chef-inspired menu for world-class deliciousness and hundreds of associates eager to help create the moments that matter.
Topgolf is truly everyone's game. With 55 venues entertaining more than 17 million guests annually, original content shows, next-gen simulator lounges through Topgolf Swing Suite, the global Topgolf Tour competition, pop-up social experiences like Topgolf Crush, Toptracer technology as seen on TV, and the world's largest digital golf audience, Topgolf is the future of active entertainment.
Topgolf continues to blend technology and entertainment, golfers and non-golfers, children and adults—to create an experience that makes socializing a sport for everyone.
55LOCATIONS WORLDWIDE
2 HOURSAVERAGE VISIT LENGTH
44 MILLIONGAMES PLAYED IN VENUE
4 PEOPLEAVERAGE GROUP SIZE
45,000AVERAGE VISITS PER DAY
52%VISITORS AGED 18–34
80 MILLIONCONSUMER TOUCH POINTS ACROSS MEMBERSHIPS, EMAIL, APP DOWNLOADS
73%MALE VISITORS
51%VISITORS ARE NON-GOLFERS
AT-A-GLANCETopgolf
The LocationTopgolf Richmond is only 10 minutes from the heart of downtown Richmond and has strong visibility and access at the intersection of three major interstates—I-195, I-95 and I-64.
There are over 33,000 businesses, 524,000 employees, and a large residential population located within a 25-minute drive of the site. Additionally, there is a significant university presence with a combined enrollment of 65,000 students at the University of Richmond and Virginia Commonwealth University.
Many nearby retail locations including, Dave & Buster’s, Bar Louie, PF Chang’s and Costco, have significantly outperformed national averages in this area, which provides further evidence of the local demand for experiential retail. This infill location is expected to appeal directly to businesses and millennial cohorts and will provide Topgolf with superior access to the majority of Richmond’s population base of 1.3 million people.
1,283,893TOTAL POPULATION
499,256NUMBER OF HOUSEHOLDS
$81,851AVERAGE HOUSEHOLD INCOME
$2.4 BILLIONECONOMIC IMPACT OF TOURISM
23,715JOBS RELATED TO TOURISM
38.9MEDIAN AGE
67.5%POPULATION IN WHITE COLLAR JOBS
7 MILLIONANNUAL VISITORS
3.0%UNEMPLOYMENT RATE
Richmond At-a-Glance
Sources: U.S. Census Bureau, U.S. Bureau of Labor Statistics, Richmond Office of Economic Development
High-Visibility Location in the Hottest Neighborhood in RichmondTopgolf Richmond will benefit greatly from its location adjacent to the burgeoning Scott’s Addition neighborhood—a hip and historic enclave featuring a wealth of craft breweries, modern eateries and eclectic art. The neighborhood is also home to The Diamond, a 12,000-seat baseball stadium that is home to MLB Minor League team, the Richmond Flying Squirrels. In addition, the Washington Redskins training facility is located in Scott’s Addition.
With dynamic and rapid growth in Scott’s Addition and virtually no space left to develop, the county has been studying how best to position the 500-acre area directly to the north to capture expected spillover. The county calls the section the “Westwood area” and is looking at how to update existing zoning and infrastructure to capitalize on the primarily industrial corridor that extends from Westwood Avenue to Staples Mill Road.
It is projected that a massive influx of new development will spring up around the Topgolf Richmond location, prompting county officials to internally coin the area as “Scott’s Addition 2.0.”
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Scott’s Addition is now the City of Richmond’s fastest growing neighborhood, adding over 3,500 residents in the past seven years alone. Source: Scott’s Addition Boulevard Association
Corporate License #01355491The broker for a purchaser of the property shall be entitled to receive a real estate commission only in the event that broker and the property’s owner execute a written commission agreement containing the manner of calculation of that commission and all conditions to its payment, and the satisfaction of those conditions. Absent a written agreement to the contrary between that broker and NKF that broker shall not look to NKF for payment of such a commission or any other compensation. Although all information furnished regarding property for sale, lease, or financing has been obtained from sources deemed to be reliable, that information has not been verified by NKF and no express representation is made nor is any to be implied as to the accuracy thereof. That information is subject to errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice and to any special conditions imposed by NKFs’ client.
Net Lease Capital MarketsMATT BERRES | Lead Broker
Executive Managing Director949.608.2066
KEN HEDRICKExecutive Managing Director
JERRY HOPKINSExecutive Managing Director
ANDREW RAGSDALESenior Managing Director
MAT ADLER | Local ContactManaging Director
VA RE Lic. #0225180859
